When Should You Consider Engaging A Third Party Debt Collection Service for Your Business?
The settlement of debts owed by either another company or an individual is a common challenge that businesses often experience. Debt collection can be a complex and highly involved process. It is time-consuming, especially if the debtor refuses to cooperate. Therefore, it makes sense to consider leveraging the services of a third-party debt collector. Here we look at some of the occasions where engaging external help represents the right strategic approach.
1. Failure of in-house collection efforts – A situation can arise when your in-house collection team is unable to recover late payments from your customers. This is the time when you should be taking assistance from a third party debt collection agency. Debt collection agencies have extensive knowledge and experience in dealing with difficult customers and can help you to achieve fast and effective debt recovery.
2. Pending debt is long overdue – When your unpaid invoice is overdue for a long period, it becomes very difficult to collect. Rather than wasting valuable resources, chasing the customer it could be beneficial to involve a professional debt recovery team.
3. Unable to contact the customer – Collecting payments become difficult if your customer is avoiding all methods of contact or disappears completely. However, an experienced debt collection team, using their extensive data can help to trace your customer. Once located, they know exactly how to approach and ensure your customer makes the payment.
4. When your customer disputes the invoice –Taking external help is beneficial when your customer completely avoids making payment and raises disputes over the invoice. A debt recovery agency will work as a mediator to understand the reasons why your customer is delaying payment, and review your terms and conditions of sale to assess the viability of their claim. Through this understanding, they can work with you and your customer to deliver a solution that works for all parties and resolve any disputes to unlock payment.
5. Difficult customer with repeated excuses – A common problem that you often come across is when your customer keeps promising payment but never actually pays you. Spending too much time on one customer can be detrimental for your business. Therefore, you should consider engaging a debt collection agency who has the knowledge, tools and experience to get you a successful result.
Why choose Coface?
Coface, a leading provider for exporting companies, maintains debt collection services in more than 100 countries, employing more than 440+ debt collection specialists and 185 law firms. Our resources and vast experience can give you a high-performing, cost-effective alternative to pursuing debt collections on your own. Our database of 200 million companies across the world helps us to analyze payment behaviors and build a strategy for payment recovery.