Is it time to consider a third-party debt collection agency? Is recovering overdue bad debt straining your ability to focus on important accounts, complete projects, or succeed with your own career goals?
Whether you work in manufacturing, real estate, the non-profit sector or any other industry, you are likely to have encountered an issue with receivables at some point. As a credit manager, collecting a bad debt may be an occasional problem or the bane of your existence; either way, depending on the size of the client, bad debt can be a serious concern.
Even when your firm has a formalized debt collection process in place with clearly defined policies, the KPIs may be telling a different story to your CFO. Despite your best efforts to follow up, you may need help if bad-debt write-offs have escalated out of control.
Advantages of a Third Party Debt Collection Agency
Cost-Effective Debt Recovery - A 3rd party debt collection agency is simply a cost-effective way for a business of any size to collect outstanding consumer and commercial debt. It isn’t counterintuitive to seek outside debt collection help. Even if you have an in-house employee or department dedicated to debt recovery, there are many advantages to using a third-party collection agency.
Preserving Relationships - We understand your desire to settle debts in a timely manner while preserving the good customer relationships you have carefully nurtured. Objective collection solutions are, for many credit managers, the biggest advantage of bringing in a third party – especially when a debt is being disputed. An experienced third party debt collection agency can bring a fresh approach that is sufficiently proactive, but also sensitive to the important relationships between the company and its debtors.
Other important benefits of retaining an outside collection agency include:
Debt Recovery Expertise: When payment due reminders are going unanswered, it can be difficult for credit managers to know how to proceed, particularly when commercial debt is involved. A third party agency focuses solely on troubled accounts and can yield better results.
Cost Savings: When valuable time is being spent fruitlessly chasing debt with phone calls and repeated invoices, costs can quickly mount up. A third party debt collection agency frees up employee time. As well, settling debt amicably can prevent costly litigation while retaining important clients, thus reducing the costs of acquiring new clients.
Preventative Advice: You know the saying, “An ounce of prevention,” …a third-party collection agency can be a phenomenal source of information on new laws and regulations that affect your accounts receivable before debt goes delinquent.
How to Choose A 3rd Party Collection Agency
Choosing the right debt collection agency is important when you want to treat the company’s finances as if they were your own. Collecting debt is a highly skilled profession that requires a balance of sensitivity and action that can take years to master.
PCM Corp is a national third-party debt collection agency that is licensed provincially to legally collect consumer and commercial debt across Canada. We can also help with international debt collection. We employ collection professionals who not only have intimate knowledge of the debt collection process, laws, and regulations, they also possess decades of experience in all aspects of third party debt collection.
Do We Check All the Boxes for Your Business?
If you wish to collect business debts but are concerned about customer satisfaction and retention, we are here to help you reach your goals. A PCM professional is available to answer any questions or concerns you may have about using a third-party debt collection agency.
Let’s discuss the debt collection best practices that work best for your industry that will keep your clients happy. To schedule a free, no-obligation consultation please call us Or fill out this form- it takes less than a minute.