7 Signs that Your Start-up Needs to Tie-up with a Collection Agency

“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!