Navigating the financial maze of unpaid debts can be a daunting task for any business. When customers default on their payments, it can have a significant impact on your cash flow and overall business health. If you find yourself in this predicament, it might be time to consider engaging the services of a third-party collection agency.

One popular model attracting businesses is the ‘debt collectors no win no fee’ approach, which ensures that you only pay when the agency successfully recovers your debts. This blog post aims to highlight six compelling signs that it’s time for your business to invest in a third-party collection service.

You’re Getting Frequent Calls from Debtors and They’re Not Responding to Your Payment Plans

When your phone incessantly rings with calls from debtors, and they’re unresponsive or dismissive of your payment plans, it can be an early red flag. This lack of engagement could be due to their inability to pay, disregard for the debt, or they might be buying time. In such situations, a third-party collection agency in the UK can step in as they are equipped with strategies to handle these scenarios.

They have an established process to negotiate payment plans and employ effective communication techniques which can help to recover the outstanding amount. Notably, the ‘no win no fee‘ model ensures that the agency’s success aligns with your business’s financial recovery, making it a win-win situation.

Your Collection Rate Is Lower Than It Should Be Given the Amount of Time You’ve Spent Trying to Collect Debts

When you invest significant time into debt recovery, but the collection rate remains stagnant or increases marginally, it’s a clear indication that you might need to rethink your approach. The time and resources spent on debt collection could be utilised more effectively in other revenue-generating aspects of your business.

A third-party debt collection agency has the expertise and tools to maximise the collection rate, thereby improving your cash flow and reducing the time spent on debt recovery. Their ‘no win no fee’ model further mitigates the risk, as their payment is tied directly to their success in recovering your debts.

You Have a Significant Number of Delinquent Accounts That Are Ageing Beyond 90 Days Without Being Collected

A high volume of delinquent accounts that remain uncollected after 90 days is another definite sign that it’s time to hire a third-party debt collection company. It’s crucial to understand that the likelihood of debt recovery decreases as the debt ages. The longer the debt goes unpaid, the harder it becomes to collect. A third-party agency is experienced in managing and prioritising such accounts.

They have tried and tested strategies that expedite the recovery process and increase the likelihood of success. Their ‘no win no fee’ model ensures that they work diligently to recover your funds as their remuneration is directly linked to their success.

Your Staff Is Spending Too Much Time on Collections and Not Enough on Other Tasks

If your staff members are devoting a disproportionate amount of their working hours on collecting debts, it could be affecting their productivity in other essential tasks. Their key roles and responsibilities might be neglected, impacting the overall functioning and growth of your business. Moreover, not all staff members have the required skills or expertise to handle debt collection efficiently.

A third-party collection agency, on the other hand, has trained professionals who specialise in debt recovery. Their involvement can free up your staff to focus on their core duties while ensuring that your outstanding debts are pursued strategically and effectively. Utilising the ‘no win no fee’ model, you can rest assured knowing that the agency is incentivised to succeed in recovering your debts.

You’re Dealing With Large Amounts of Paperwork Associated with Collecting Overdue Bills

If you find yourself swamped with paperwork related to collecting overdue bills, it’s yet another sign that you might benefit from the services of a third-party collection agency. Managing this paperwork can be time-consuming and stressful, particularly if you don’t have a dedicated team for debt collection. It involves keeping track of each debtor, their payment schedules, and any communication or legal procedures associated with their case.

A third-party agency, well-versed in handling such documentation, can streamline this process. They have systems in place to manage paperwork efficiently, ensuring due diligence while freeing up your time to focus on core business activities. The ‘no win no fee’ model further reduces your risk, as you only pay for successful debt recovery, making it a viable and cost-effective solution for managing your unpaid debts.

Your Debtors Are No Longer Responding to Your Emails or Letters

When debtors cease responding to your emails or letters, it’s a troubling sign that they may have entirely stopped making payments. This silent treatment can be due to various reasons, such as financial hardship, or a conscious decision to ignore their debt obligations. This non-responsiveness not only hampers your debt recovery efforts but also indicates a deteriorating relationship with the debtor. Hiring a third-party collection agency can be a productive move in these situations.

With their expertise in dealing with such scenarios and their ‘no win no fee’ model, these agencies can re-establish communication, negotiate payment plans, and work towards recovering the owed amount. They are skilled at navigating such difficult situations and their payment is directly linked to their success, thereby ensuring they are motivated to recover your debts to the best of their ability.

About Us

Taurus Collections (UK) Ltd. can be your one-stop destination if you want to successfully boost your odds of collecting debts. Use our Late Payment Calculator to calculate your outstanding credit amount. We help our clients with certain debt collection services that include:

• • • Business Financing
  • • Outsourced credit control
  • • UK & international credit checking
  • No Collection No Fee Debt Collection

For more details, call us at 0800 069 8777 or 01332 565 350 (Derby). Send your concerns to enquiries@tauruscollections.com. Connect on Facebook, Instagram, and Twitter. Drop by our office -International House, 126 Colmore Row, Birmingham B3 3AP, UK.