- May 24, 2022
- Posted by: Taurus Collections
- Category: Blog
Time and money are the most critical elements that keep any business up and going. Thus, timely debt collection is crucial for every business. It enables you to improve your company’s cash flow, allowing businesses to reduce the risk of incurring losses and free up their resources. Moreover, debt recovery is directly associated with your credit score. Therefore, it is vital to have a robust debt collection strategy to enable you to stabilise your cash flow and acquire money from your debtors without hampering your business relationships.
With regards to the recovery of debts, listed below are a few problems faced by the debt collecting agency:
Oral contracts
Oral contracts are the ones that are outlined and agreed upon verbally via verbal communication. This means that both parties will have no paper trail to follow and prove in a case where either of the parties does not fulfil the terms of the contracts. Furthermore, this leaves the aggrieved party helpless as they become unable to challenge the other party’s fault before the law.
Faulty written agreements
Written agreements are always better than oral contracts. However, a poorly drafted contract brings no less trouble than a verbal contract. Besides drafting, the parties involved in several written agreements are not habitual in getting a grip on the undersigned terms and conditions of the contract. Thus, prior to entering into any written agreement, always remember to pay attention and ask questions if you suspect something fishy or looks vague.
Collection methods are not real-time
One of the significant roadblocks in the debt recovery process is the absence of real-time collaboration between the borrower and the collector. It is essential to understand that every debtor’s repayment abilities are unique owing to the differences in their financial backgrounds, requiring collectors to create customised collection plans. This results in a long, complicated, and incomplete collection process and hinders them from offering a smooth customer experience.
Contacting wrong people
Several times collectors end up calling debtors who have already paid off their debts long back due to the inefficiency in the recording. Such scenarios result in the wastage of time and resources that could otherwise be invested in contacting real recovery opportunities. However, allowing your debt collection agency to handle your entire collection tasks will help you manage the accuracy of reports more effectively.
Customer bankruptcy
Customer bankruptcy is an ultimate disastrous situation. Here, the recovery process depends upon the terms and conditions of the contract entered into. In such cases, generally, collateral is kept against the given debt. This allows the lender to receive money after attaching the assets or obtaining the collateral in possession. However, a bankrupt customer is a massive blow to the collection agent, as debt recovery becomes a long, tedious process.
About us
Looking for a reputed debt collection agency to assist your business in conducting a hassle-free collection of debts? Taurus Collections (UK) Ltd is here to help! We follow an easy, straightforward method to support our clients with debt collection services by providing utmost customer satisfaction while dealing with their debtors. Our services include:
● No win-No fee debt recovery
● Business finance
● Pre-legal visits
● UK & international credit checking
Additionally, you can use our Late Payment Calculator to calculate and verify your remaining credit amount.Reach out to us at 0800 069 8777 or 01332 565 350 (Derby) or send your queries at enquiries@tauruscollections.com. Stay tuned on Facebook, Instagram, and Twitter.