Whether you’re an international conglomerate or a small, local business, your margins are likely tighter than you’d want them to be. Companies owed money are in a bind.
On one hand, they can’t afford to let the debts go uncollected, but efforts to do so cost resources and may not succeed. Even when they do successfully collect the debts, they may alienate partners or clients in the process.
Leading debt collectors can help on all accounts, plugging leaks without pushing people away. Here’s how they do it.
Prompt Reports to Credit Agencies
If you ask a debtor for the money they owe, they aren’t likely to open their wallet right away. After all, if they had the money freely available, they probably would have paid what they owed in the first place.
The best Minnesota debt collection agency understands how to light a fire under debtors, which entails timely reports to the major credit agencies. Alerting the credit agencies changes the debtors’ calculations.
Once they realize that your outstanding debt can affect their credit rating, making it harder and more expensive to obtain loans in the future, the payments will start flooding in. The key is to gently push the right buttons.
Friendly, Helpful Guidance
Let’s face it. Debt collection has a bad reputation. Whether it’s Hollywood movies painting debt collection in a bad light or real-life examples of underhanded tactics like robocalls, late-night calls, or threatening language, not everybody has a wonderful impression of debt collectors. Sometimes it’s justified.
The best debt collectors avoid these ugly tactics because they understand that even when they appear to work, they don’t lead to the best outcome. They seldom result in maximum debt collection, and they can alienate future customers and partners, turning them off from doing business with you in the future.
Instead, leading debt collectors try to help debtors find a practical way to pay back what’s owed. They’ll be more receptive to this type of approach, rather than harsh demands and threats, because it helps resolve the situation.
Thankfully, the friendly, helpful approach is not at odds with the best financial results. The friendliest debt collectors in the country recoup nearly double the industry average!
Skip Tracing Done Differently
Companies trying to locate debtors who don’t want to be found have a problem on their hands. Their efforts may be in vain, and the longer they go on, the more financial drain there is.
The best debt collectors have their own fully licensed private investigator overseeing their skip tracing department. They have access to databases that companies relying on free resources don’t have. A private investigator has experience and tactics at their disposal you won’t find elsewhere, and they can locate people and assets that are hard to find.
Even better, the debt collectors with their own licensed investigator running their skip tracing department won’t charge extra for their services.
Employee Reimbursement
Sometimes, a company’s own employees are the source of the debt. This can arise in a few ways.
Employees may charge business expenses improperly, making an honest mistake in the process or exploiting the policy by filing personal expenses to the company. Perhaps an employee receives training or ongoing education at the company’s expense but then abruptly quits.
If the call is coming from within the company, debt collectors can tactfully recoup everything owed so business leaders can continue focusing on navigating upcoming challenges instead of looking over their shoulders.
Companies of all sizes have enough challenges without having to worry about recouping the money they should have already. Hiring a professional, friendly debt collector can help balance their books and ease debt-related strain.
