Bad Credit Gone

Companies and businesses today readily recognise the benefits of employing others and engaging the services of a professional debt collection agency.

With an immediate time and cost saving of not having to employ and maintain extra staff and the credit personnel getting over the phobia and myth of ‘We can’t be doing our jobs if we need to use an outside third party”, these benefits can be quickly realised, but beware there are debt collection agencies and there are debt collection agencies warns Hellen Riley-Tombs, corporate solicitor for Debtor Management Ltd.

Benefits of this third party involvement enable the matter to be mediated, resolved and documented by an independent party, thus reducing the days outstanding and write offs.

Additionally it establishes efficient procedures and control for delinquent debtors to be put into place in line with a credit policy and has a side benefit of educating your customers that you expect payment for goods or services supplied and will enforce your payment terms if required to do so.

Finding the correct debt recovery agency is extremely important if you want to achieve the desired result of reducing those amounts outstanding in the debtor’s ledger. The right agency should work closely with the client and build a relationship to gain as much knowledge about the nature of the business and it’s idiosyncrasies to achieve a successful result. Most commercial debts require a one on one approach and be proactively worked some times ‘outside the square’ for successful recovery rather than being handled “en mass” with automated processes.

Hellen says, “many companies that employ debt agencies may not be receiving the quality of service they would like and at times are even down right unhappy, but continue to use them month after month and can’t understand why they never seem to get anywhere in lowering their overdues. If these overdues are not appropriately actioned they often end up costing the company further loss and could well end up as write offs”.

A professional agency can give back to the credit manager many hours of valuable time allowing them to leave the specialists to handle the likely problem debtors, allowing the department personnel to move on with the managing of the daily cash-flow which is the life blood of any business.

HTML clipboard Hellen Riley-Tombs is Corporate Solicitor for http://www.DebtForce.co.nz a Debt Collection Agency based in AUckland with experience spanning 30 years.

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