As a business owner or accounts receivable specialist, you may have some fear around sending an account to a debt collections company. For one thing, you're entrusting a third party with your client relationship and your money and facing potentially unexpected costs. You may also have heard some really bad things about debt collections. Enterprise Collections LLC has been helping our clients recover debts for years, and we're happy to answer questions and ease any uncertainty.
Read further as we debunk the fears around using B2B debt collections to get you paid.
Shouldn't I collect on my own?
We definitely suggest (and assume!) that any account we receive has initially gone through first-party collection attempts. Before sending an account to any third-party collections agency, best practices from your accounts receivable team should include follow-up before and after the invoice is due. It's when you haven't received a response, if they're refusing to pay, or after a select amount of time that you should send the account to third-party debt collections.
Read more: When is the Best Time to Send an Invoice to Third-Party Collections?
Isn't debt collections insulting to my clients?
Unfortunately, debt collectors have a bad reputation. The bad reputation, however, is typically due to negative interactions between consumers and rude collectors during B2C (business-to-consumer) collections. Business-to-business debt collections is different because there is a relationship or at least an agreement that states what one company is paying for and what the other company is providing. Turning an unpaid invoice over to a professional debt collections agency that focuses on B2B is similar to hiring a mediator to negotiate why one party isn't fulfilling their part of the deal.
Read more: Does your Debt Collections Company offer Brand Protection?'
What if I can't afford to hire professional debt collections?
You may not be able to afford not to. If you have past due invoices that are building up, you're losing out on valuable capital that can help keep your business afloat. Unless you have the time or resources to focus on account recovery, plan to write it off as bad debt or want to spend even more money to take your client to court, a third-party debt collections agency is your best bet.
Here are even more reasons to hire professional debt collections for your outstanding business accounts:
Collections specialists that are trained in the art of recovery, including negotiation skills, industry knowledge, and more.
Software, skip tracing, and investigative resources to quickly track down who is responsible for paying you.
Fees are contingent on your account recovery.
In that case, if we cannot bring your accounts current, you don't owe us anything for attempting to collect for your business.
Instead of being afraid or falling for the myths around debt collections, reach out to us to talk about it. Our focus is on high-quality customer service - both to you and your clients - and we can help relieve any anxiety around hiring a professional B2B collections agency. Click the button below to learn more and let us know how we can help.
