When Should I Use a Collection Agency?

Debt collection is one of the more difficult aspects of running a business, especially for sole traders and small business owners.

When you have provided a service in good faith to a customer and that customer then fails to make payment, this can give rise to a multitude of feelings. You may feel confused. You may feel hurt. You may feel concerned that you will not be able to keep your business a-float if you cannot recover the debt, quickly.

Although it is a very uncomfortable situation to be in, it is important to remain professional and non-emotional, so that you can attempt to reach a satisfactory outcome with the customer.

Reaching stalemate

If you are wondering when you should use a collection agency, then generally-speaking, this is either when the time feels right for you or when you have reached stalemate with the customer. There are a number of scenarios that may indicate that it’s time to reach out for help and hand over the debt to a collection agency, such as:
1. The customer is making excuse after excuse and has not made any payments.
2. The customer has an unresolved query or dispute that you have not been able to remedy. Independent mediation is recommended in these circumstances.
3. You feel that you have explored and exhausted all avenues to recover the debt yourself and now require expert assistance.
4. Debt recovery is taking up so much of your precious time that it is taking you away from running your business.

The benefits of using a collection agency

There is much to be said about appointing a debt collection agency to manage any debts owing to your business. Not only will utilising the services of a debt collection agency enable you to focus on the many other aspects of running and growing your business, but it will give you the greatest chances of securing successful outcomes too.

When carried out by a professional team of debt collectors with the experience, knowledge and skills to manage debts, debt collection can be considered extremely cost-effective.

This is because debt collection agencies handle debts every day and therefore are experts in this complex area of business. They will have heard every excuse in the book and are the best people to get your debts paid quickly.

Show you mean business

Here at Jackson CRS, we understand the relationship between a business and customer is one that is built on mutual trust.

As a business owner, you are putting your trust in the customer that they will settle your invoice upon completion of any work agreed.

The customer, on the other hand, is trusting you to deliver the service you have promised them. Sometimes, things do not go according to plan and a customer may choose to withhold payment due to an ongoing dispute.

This is where we can step in and provide mediation to resolve any outstanding matters, quickly and efficiently. There will also be instances when a customer is simply trying to pull a fast one. By appointing a debt collection agency, you will show the customer that you mean business!

Get In Touch

Whatever the circumstances, our team is here for you in your time of need, so don’t be afraid to ask for help.

If you would like to know more about our credit control and debt recovery services call 01603 319034 or email: info@jacksonscrs.co.uk for a free no obligation chat about your needs and how we can help.