There's no doubt you've heard about debt collection agencies before. Plenty of people rely on their services every day. So, what's holding you back from picking up the phone and asking for help?
There's a common misconception that a business has to be drowning in debt before contacting an agency. If you aren't in dire straits, it's easy to believe that you aren't in a position where you qualify for their help.
But in reality, it doesn't have to be that bad. You may consider partnering with a debt collection agency if you're struggling with any of the following situations.
As Little as One Account is Overdue
You read that right: one. One account is all you need to contact an esteemed commercial collections agency. This comes as excellent news to smaller companies; you can get help when clients don't pay regardless of how big or little the debt may be.
You don't need to wait until you have a list as long as your arm of overdue accounts, nor do you have to hit a certain dollar amount. The top commercial debt collection agencies will have no mandatory minimums that prevent you from getting paid.
Your Team is Exhausted
Your in-house A/R department may be at their wit's end trying to track down bad debt. But the thing is, that's not their only job. As accountants (or even administrators), they handle a whole slew of responsibilities every day, and when it comes to debt collections, they aren't necessarily trained experts.
Compare this to a national debt collection agency, whose team is experienced in the art of negotiation. Their debt collection agents are highly trained professionals whose sole job is to collect what you're owed.
Hiring this team not only takes the burden off your in-house staff, but it also improves the chances you'll successfully collect on a variety of bad debt.
Money Keeps You up at Night
Are you losing sleep over your cash flow or pulling your hair out whenever you think about your A/R cycle? If overdue debts are impacting your mental health, it's time to speak to a national debt collection agency.
Keep this in mind even if you're worried about your accounts before they fall into delinquency. The top commercial debt collection agencies will have these pre-collection services to whip your A/R department into shape.
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Patient billing
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Telephone follow-ups
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Insurance follow-ups
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Customer Service
Your Own Bills Suffer
When clients put the squeeze on the cash flow, it can have far-reaching consequences. In particular dire situations, it can even affect your ability to keep up with your own bills.
This is as serious as it gets, so don't delay contacting a commercial debt agency right away if this is happening to you.
But remember, things don't have to get this bad before you should reach out for help. Get in touch with a professional collection agency well before your own bills go overdue, even if you only have one delinquent account. This proactive approach is an effective defense against late bills that plug up your cash flow.
