Companies faced with hard to collect debts are in a funny position: Is it worth investing more time and money to track down and motivate the debtor, or is it better to cut their losses and leave the debt go uncollected? Neither option are good.
The first one risks losing even more money without any guarantee of success. The second creates a bad precedent and ensures the company will be out the money. Thankfully, hiring a professional debt collector to let them handle it is a wonderful third option you should consider. Here’s why.
Serious Skip Tracing
Most companies don’t specialize in locating debtors. Why would they? They have HR or collections teams who tackle this task, but businesses tend to thrive only in their niche.
When you get the pros on your side, the very best ones have a private and fully licensed investigator in house running their skip tracing department. They have exactly the right skills, experience, and resources to track down debtors that don’t want to be found.
Some debtors change the name of their business and may even relocate to avoid paying debts. Even in these extreme situations, the best investigators can locate them and their assets sooner. Once they do, they’ll promptly file a report to all the major credit bureaus so ignoring the debt impacts their credit rating.
Once the delinquent debtor realizes that repaying the debt now is cheaper than paying increased financing rates later for loans and struggling to secure them, they tend to pay up.
Friendly All the While
Whether you owe money or not, nobody likes being asked to pay up. Tensions may rise, jeopardizing future relationships with partners, clients, and customers. The best professional debt collectors prevent this ugliness from arising by abstaining from any underhanded or unethical collections tactic the industry is sometimes known for.
The best debt collectors will never resort to late-night calls, robocalls, ugly or threatening language, or anything that would reflect badly on you and your company. Not only does this pave the way for better relationships moving forward, but the friendliest debt collectors also manage to collect more than the industry average. Sometimes, even about twice as much.
Every Industry
Professional debt collectors need to approach certain industries differently than others. For example, medical collections come with certain responsibilities towards patients enshrined in HIPAA laws.
Leading professional debt collectors know how to navigate the particulars of every industry in which they operate to ensure compliance with all local, regional, and national laws. That way, your company stays safe from any potential fines, lawsuits, or negative PR.
Look for a debt collector with an A+ rating from the Better Business Bureau. That’s a great sign that they are reliable and trustworthy.
On one level, paying a company to collect fees you should already have feels self-defeating. However, you don’t have them, and you likely won’t collect them on your own. If you manage to, it costs additional time, effort, and money. Let a pro tackle it instead as long as they fit the above description.
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