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Should you Chase A Debt Yourself or use a Debt Collection Agency?
When a customer is failing to meet their payment obligations, it can be frustrating, it can hurt your cash flow and it can cost you hours of additional work to chase the debt.
The issue that you face, however, is what to do about it. Do you opt to pursue the debt independently, taking on the work yourself or rely on the services of a debt collection agency?
Chase a Debt – Independent Debt Collection
When faced with the challenge of collecting a debt, some people and businesses choose to pursue the issue themselves, believing that it may be faster and cheaper. There are circumstances in which this can work, particularly if a business has its own credit control team*. (*Often Credit Managers also will need to escalate the collection process and use a Debt Collection Agency)
But if you don’t have a credit control team, the process can be a lot more time-consuming and costly. You will have to spend time chasing up the debt, at the same time as trying to find out what the law says about domestic and international debt collection, and what rules you have to follow.
Finding out what you are allowed and not allowed to do when recovering a debt costs you time and time means money, both in terms of the direct costs and the time diverted from growing your business.
You also have to consider how independent debt collection may affect your relationship with your customer. When you are recovering a debt, it can be too easy to slip into negative or even hostile communication. This not only will make it harder for you to resolve the situation, but it is also more likely to permanently damage the relationship so that even if you can recover your debt, you will have lost a customer in the longer term.
Employing a Debt Collection Agency
The other option when you’re chasing a debt is to employ the services of a professional debt collector. A specialist debt collection agency offers many advantages when compared to pursuing a debt yourself, and could work out as more cost-effective.
A modern debt recovery agency will bring a wide experience of debt collection from across different sectors, an awareness of the law and the rules surrounding debt recovery, and an understanding of the importance of maintaining business relationships.
We have helped hundreds of businesses to recover outstanding debts, employing our professional experience, knowledge of the law and customer relations expertise to quickly and efficiently recover debt, leaving business owners to get on with the important work of growing their company. We will preserve your client relationship and we will collect the money you are owed and you will get your client back for future business dealings. Get in touch with us today and find out how we can help you resolve a difficult debt issue.
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