221 East Main Street, Morristown, TN 37816


Five Reasons to Hire a Debt Collection Agency

Posted by Emily Herrington on Jul 11, 2022 10:18:00 AM

What do you love about owning your own business? You could, most likely, list 100 things that are fantastic about running your own company and your answers would be unique and fascinating. What could derail such positive reasons to be your own boss? We all know that one of the most exasperating experiences of doing business is when we have to deal with customers that don’t pay their bills. This is where a debt collection agency can make a world of difference to a business whose morale might be sagging after running up against clientele that will do everything in their power to avoid paying their debts. These debtors must be convinced that settling their accounts would be in their own self-interest. Here are a few of the many reasons to hire the services of a debt collector to get the job done after creditors have had no luck collecting unpaid invoices. 

  1. It is harder to ignore a debt collector than the business’s first attempts at collecting what is owed. When a debtor receives a phone call from a debt collector they will feel disquieted to hear how acute the threat to their credit score is. Hearing the legal options that creditors have if the debtor refuses to pay their bills can convince them to begin making payments in order to save their credit. 

  2. Collection agencies have numerous resources at their fingertips to track down absconding debtors. When people have seemed to vanish off the face of the earth, debt collectors are seasoned veterans at searching out their exact locations. Furthermore, they know just what to do next. 

  3. Being farther removed from the defaulted account, debt collectors are naturally able to remain impassive. We have been trained to stay neutral and level-headed at all times. This is crucial for a positive outcome. Problematic customers will frequently use emotion as an attempt to provoke a representative in order to avoid paying their debt. Debt collectors are adept at remaining calm and neutral as they negotiate with debtors.

  4. Most agencies will have on their employee roster a few collection agents that are far more experienced in their line of work than their colleagues. These agents have had many years in this field and have honed their collection techniques to inescapable sharpness. Their specialty is devoting all their time and attention to retrieving debts owed. In-house credit managers and business owners are always busy; their attempts at debt collection will be less effective when diluted by all of the other duties they must fulfill every day. An agency’s sole purpose is to recoup money owed to its clients. A laundry list of collection calls can become a detriment to a business’s productivity. 

  5. When a collection agency is unsuccessful at collecting from a debtor, they have the knowledge and resources immediately at hand to file suit or receive a judgment. If pursuing legal action against the debtor becomes the only option available then the agency will have a number of law offices and other agencies that they can use to recover the revenue.

There are many more reasons than these five to hire the services of a debt collection agency. If your business is currently having a difficult time collecting unpaid debts, a debt collection agency might just be the answer.

Depend on Account Resolution Team as a resource for getting out of debt. Be sure to follow us on Facebook, LinkedIn, and Twitter, and see our other blogs at: www.accountresolutionteam.com

Topics: Collection Strategy, old debt, debt collections, collection agency, student debt, unpaid debt, accounts receivable, outsourcing, revenue, debt settlement, debt collection regulations, medical collections, medical debt