Debt collection agencies help businesses collect the payments that companies don’t get on time for various reasons in the most efficient way possible. Digital debt collection services can change how firms handle their finances in today’s world. However, many businesses debt collection services not use debt collection services as they believe in the prevalent myths.
Here, we debunk some of the most common misconceptions about online debt collection.
It is expensive
One of the most popular misconceptions that most businesses believe about debt collection services is that they are costly. However, in reality, most debt collection businesses work on a success-only basis, meaning they only get paid once your debt is recovered. They usually charge a minimal amount of the invoice as the fee.
My customers won’t like it
Another common worry businesses have about debt collection is that their customers won’t like to deal with a third party. However, sometimes, sustaining your company is more crucial than maintaining a business relationship. Also, you need to remember that you need to reach out to a collection agency since your customer did not pay in the first place, and you are within your rights to do whatever you can to get your money.
It is only for large companies
Many small businesses don’t hire debt collection companies in the belief that only big companies can afford them. However, small business debt collection services are most beneficial for small enterprises, as they don’t have the time or resources to chase after unpaid invoices. They often bear the losses due to that. With debt collection services, small and big companies can improve their cash flow.
It's only for old debts
Many businesses believe they should hire debt collection services only for old debts. However, you can use debt collection for any past-due invoice. Rather than wasting your time chasing after an unpaid invoice and hiring debt collection services, hiring them at the beginning is best. It will save you both time and money.
A solicitor is more effective
Yes, a solicitor can help you get your money from your customers. However, there is an overlooked fact that legal systems take a lot of time to get things done. You don't have months and years to wait for an unpaid invoice as a business. A debt collection agency can help you get your money back more quickly and ensure that your relationship with your customers isn’t spoiled. It can happen if you take the legal route.
It will damage my brand
Another primary concern companies have about hiring a debt collection service is that it will ruin their brand name in the market. However, debt collection agencies will respect and treat your brand values as their own, so that won't happen. Hiring a debt collection agency will only enhance your in-house collection efforts in a better way.
DebtCo is the only all-service small business debt collection company you need for payment collection woes. We have developed an innovative digital debt collection platform that can take care of all your collection problems, regardless of your industry. You can reach out to us at 01376 800 592 or request a meeting to know more.