Debunking the four common myths about debt collection agencies

Currently, there is about sixty percent of businesses have written off more than a single percent of their entire turnover as uncollectable in the past three years alone according to research. What makes this a huge problem is that this could have been reduced significantly if businesses were able to seek the help of debt collection agencies.

However, what makes it very unfortunate is that there are a lot of myths that continue to stain the reputation of debt collection agencies that scares businesses away from availing for their service.

In order to debunk these myths, you should keep reading this post about how untrue these myths are and why you should be starting to employ the best debt collection agency now and get the money that you owed.

  1. Very expensive service– One of the most common myths that plague debt collection agencies are having an expensive service. However, in reality, the majority of debt collection agencies work on a success-only basis which means that they only get paid once they successfully collected your debt. The price that you have to pay them for their service can be very minimal compared to the amount that you will be losing if you have to write the debt that was uncollected.
  2. Your customers will hate this– In reality, a good debt collector completely understands that maintaining your customer relationship is always a priority in your business. In order for them to become reputable in their chosen business, they will make sure that your brand is protected through polite mediation when it comes to collecting debts through reaffirmation of your customer’s obligation to pay while providing them the valid explanation of the adverse effects if they continue to be stubborn.
  3. Only big businesses can afford it– Nope, that is completely untrue, because, in reality, there are thousands of small businesses that refer their debts to collection agencies each day because they recognize that chasing late payment is not their entire expertise and a third party would be likely to provide them better results. When you only operate a small business, it would be unlikely that you will have the time or resources in chasing late payments without leaving a lot of responsibilities behind, however, by outsourcing your credit control, you can free a lot of time and use it to focus on your business operation.
  4. It is just for age-old debts– In reality, there is research that proved that the earlier a debt can be referred, the more it will likely to be collected. Instead of wasting away valuable time chasing debt for months on end in-house, why not you hand it over and determine if a debt collection agency can provide you better results? You can even put up an ongoing debt collection facility that the agency can take on regardless of the debt’s age.

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