“Do you want to know about the signs that show your start-up needs to collaborate with a debt collection agency? If no, then read this blog.”
Running a start-up can be quite challenging, even if you have owned
businesses before. Even the most skilled people can get confused when it comes
to dealing with the everyday challenges that come with a new business house.
And in every case, you do need to take decisions, which you never thought you
would be doing at all.
Now coming to your turnover and liquidity, well many-a-times, we see
that it suffers because of the debtors or faulty payers of the company. They
just don’t pay heed to the due date and do not even care to respond to
reminders! I can understand that it is your start-up and hiring a business
collection agency was not a part of your plan at all; but trust me, it is worth
it. Otherwise, you might just have to suffer a lot of bad debt, which is
detrimental to the health of your company.
However, to know about the red signals that show that you need to hire collection
agency services, you should simply keep scrolling and read this blog.
Your Customer goes off the
Grid
There would always be customers that would go missing – you simply
cannot trace them or figure out where they are currently located at. In these
kinds of cases, you shouldn’t delay in hiring professionals, who can use the
skip tracing method and find them out! You should also consider hiring experts
if your customer fails to respond to a demand letter that you have sent.
Your Customers Break the
Original Agreement
If you have documented the original agreement where you have mentioned
about extending the credit with a customer, anything that he or she does to
break the agreement is a clear signal that you must take charge of the account.
Experienced debt collectors know that any little variance in the original
agreement can be really detrimental and they would work on it instantly.
Percentage of Payments
If a customer is offering you to make partial payment, then there is a
high chance that you would never get the full amount. Ask the agency you have
chosen to scrutinize the account and dig deeper to find out the probable
reasons behind the same.
You don’t have Time to
Document Collection Efforts
Well this is not a red signal, but yes, of course a valid reason to hire
professional services. If you do not have ample amount of time to document the
efforts or the details of the mails, calls or reminders, then you must not risk
the account and get in touch with a reliable and experienced company. Trust me,
only proper documentation can save you in the court of law, if things get that
serious.
Your Customer Disputes the
Debt
This is one complicated case, which you cannot deal with without the
help of experts. If your customer raises a question on the validity of the debt,
then the burden of proof lies with you and your business. For this, you must
call an agency and trust me, the contingency fees is totally worth it!
Things get Personal
Although it is a start-up, you might have customers who were timely
payers in the beginning but now, they have changed and do not pay heed to your
calls or emails. Do not let your emotions come in the way of getting back dues.
And this is only possible if you hire a business collection agency for this job.
Debt is just Aging!
Lastly, if you feel that some of your accounts are just getting old
without any kind of progress, then again, you need to seek the help of good
collectors, who are experienced and trained.
So, these are the seven signs that reflect you need to hire professional
collection services now! Trust me, you wouldn’t regret paying the contingency
fees. All the best!