2018 is your year! It’s time that you practice working smarter not harder. Ask yourself, what are you doing in your business that ultimately takes you away from your core focus. Chance are, one of those things is chasing up overdue, unpaid invoices.
These kinds of conversations and the paperwork and time behind them can often be stressful. Worse still, they might not be as effective as they once were and can jeopardise your valuable client relationships.
A professional debt collection agency helps to ensure that you have a professional by your side to protect your business as best as possible against mounting debt. Despite the associated stereotypes of debt collection companies, good debt collectors operate ethically and follow strict industry guidelines when helping to recover outstanding debts.
This is why you should consider outsourcing your debt collection in 2018.
Update Your Credit Terms
At Capstone Collections we can help you set terms of trade that are clear and beneficial to your business. This should be signed by all parties prior to any work commencing and should clearly stipulate that all fees and charges associated with the debt collection process are solely the responsibility of the customer.
Conduct Credit Checks Prior to Extending Credit
The Australian Comprehensive Credit Reporting laws make it simple for businesses to have a better idea of a customer’s credit profile. By conducting a credit check on any new customers will significantly reduce your risk of invoices falling into the overdue category. A debt collection company is able to assist you with these types of customer checks and suggest ways to implement these systems.
Ensure The Cash Keeps Flowing
A timely collection of invoices improves your business’ ability to maintain a positive cash flow. Outsourcing your debt collection requirements means that you will have more time to focus on the other important elements of your business, knowing it is being professionally taken care of.
Reduce Your Arrears
Research indicates that the longer an invoice remains outstanding, the less change it has of being settled. That’s why it’s important to ensure that all invoices are paid in both a time and effective manner. Collection companies form an integral part of this system with their access to specialised technology and proven recovery methods.
Engaging the services of a debt collection agency helps take away the burden of chasing outstanding invoices. Working with a debt collection agency will see your late payments and non-payments significantly reduced as their sole focus is monitoring and collecting your receivables.
Maintaining Your Client Relationships
A debt collection agency understands that client relationships are what keep your business running. When you outsource your debt collection to a third party it ensures that conversations with your clients are limited only to the goods and services you provide, rather than worrying about their payments.
Debt Collection agencies work with highly skilled and trained professionals who are capable of nurturing and maintaining the relationships between you and your clients.
If you would like to speak to us regarding professional debt collection and to discuss your outstanding debt needs, phone 03 5400 1281 today.