When you put someone else in charge of collecting an outstanding debt on your behalf, you need to be sure that you can trust that person. And trust is a very delicate thing, especially in today’s high-speed digital environment.
There are many levels of establishing trust, but one of the most important for a commercial debt collection agency is returning any funds that they collect to the original creditor promptly.
Many of the companies in our industry are good at what they do, but it is not uncommon for those collection companies to hold onto any funds that they recover for 30 to 60 days before returning them to the original creditor. From where we sit, that just isn’t right, and we put together a quick list of five reasons why.
1. It’s Your Money
First and foremost, any funds that we collect on your behalf still technically belong to you. If you hire use to collect an outstanding debt on your behalf, we don’t consider the job done until that debt is collected and the money is returned to you.
For that reason, we have a company policy that we will remit payment within two weeks from the time we receive payment from a debtor.
2. There’s No Excuse
With all of the technology available today, there is simply no reason that a collection agency needs to hold onto any type of funds for more than a few days. Once the checks clear or the electronic payments are confirmed, there just isn’t any good excuse for us not to forward it straight over to our clients…so that is exactly what we do.
3. You’ve Already Earned It
In addition to the fact that the funds we are talking about belong to the client and we have no excuse to hold onto them, it is also important to remember that outstanding debts are typically associated with services that have already been rendered. You did the work, and you earned the money, so you definitely deserve to get paid as soon as possible when we recover the money.
4. You’ll Want to Reinvest It
Cash flow is the lifeblood of any good business model. And we believe that getting any funds we collect back to our clients as quickly as possible is essential so that they can reinvest that money back into their business.
Every business could benefit from an influx of capital, and if you look at it that way, quick and efficient debt recovery can be that influx for your business.
5. You’re Tired of Waiting
In most commercial debt collection situations, the clients who hired us have already been waiting well beyond the original terms for some type of payment. At this point, they’re already tired of waiting, and we don’t believe that it is necessary to make them wait any longer. That’s why we make it a point to return the funds at a much faster rate than is standard for our industry.
Getting your funds returned to you somewhere between two and six weeks faster than the industry average might not seem like a big deal on a debt that you have already given up on, but we have found that everything changes once we are able to collect on one of those debts.
In those cases, our clients appreciate our quick turnaround times because it reinforces the idea that we are working together as partners.
Could you use a partner to help you collect on some of your delinquent accounts?