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How Outsourcing Debt Collections Benefits Your Revenue

Posted by Emily Herrington on Mar 11, 2021 11:00:14 AM

Any business can face financial problems that work against the effort to maintain sufficient cash flow. One dilemma that can have a significantly negative impact on your company is issues in accounts receivable. When a service is provided and your customer does not pay, meeting your bottom line becomes difficult. It is a debt collection agency’s obligation to recover your earnings so that you can continue doing business.

Experience

Resolving delinquent accounts can be especially burdensome when doing so is not your expertise. Debt collection agencies’ primary focus is collecting debt and they have experience doing so in an efficient and cost-effective manner. A good collection agency has tools that allow them to identify accounts that are most likely to pay and prioritize them. Debt collection agencies are well versed on the best tactics to encourage a debtor to pay. Therefore, the process of resolving accounts is expedited and you get paid faster.

Focus on Core Business Activities

Not only does debt collection take a lot of time and effort, it also can be quite stressful to those that are not professionally trained to do so. Your employees will likely be happier and more productive when given the opportunity to do more of what they are best at. Outsourcing debt collection allows you to redirect your resources from managing collections to other business functions, saving you time, energy, and money.

Legal Protection

There are a multitude of legalities related to collecting unpaid debt; an agency is knowledgeable of these laws. If a debtor knows their rights have been violated, they will not hesitate to sue. Attempting to collect a debt on your own poses a risk that can be avoided by allowing them to recover your customer’s unpaid debts. Additionally, in the event that you decide to sue a debtor, collection agencies maintain documentation of collection efforts that the court will need to see to determine that there was a substantial attempt to recover the debt.

For more information on how Account Resolution Team can help YOU get your money, call 423-586-7613 or visit www.accountresolutionteam.com

Topics: Collection Strategy, Technology, old debt, debt collections, collection agency, accounts receivable, outsourcing

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