Debunking the top 3 myths about debt collection agencies
When companies are considering contacting a debt recovery agency, they tend to immediately think of unlawful people who go to extreme lengths to take money from the poor in order make themselves rich. However, the truth is, there are significant misunderstandings about credit collection agencies.
Credit collections are a necessity in day to day business operations. Unfortunately, not all clients or customers will pay a business on time, so it is important that a company takes action. Investing in a debt collection agency is the best way for a company to maintain their reputation, safeguard their cashflow, and have the ability to keep running.
An excellent debt recovery agency is lawful, ethical and professional, so read on for the top three myths that need to be debunked when investing in their services.
1. Debt collection is a last resort
The sooner a company contacts a debt recovery agency, the easier the recovery process will be.
If a recovery service is contacted from the outset, they will be able to speak to the client directly, and hopefully only in regard to a one-off payment. The later a business leaves it to chase missing payments, the larger the outstanding figure will become.
2. Investing in a debt collection agency is bad for a company’s reputation
A debt collection agency will be able to suggest payment plans and conditions that suit a client’s situation. This not only removes the stress of not being able to afford a lump sum payment, but also assists a business in their future forecasting, as they know when the money is coming in.
3. Collection agencies are expensive
The perception that debt collection agencies result in a company having to pay copious hidden fees is a myth. A company needs to simply engage with an agency that has an excellent reputation and reviews.
Most debt collection agencies are transparent in their services, their approach to clients and their fees from the outset.
Investing in professional debt collection agencies such as First Capitol is not only the perfect way to ensure businesses are able to keep running, it also provides peace of mind for a client who may be experiencing financial difficulty.