Commercial debt collection spans just about every imaginable type of business, and that definitely does not exclude professionals like architects, accountants, and consultants. These types of professionals often bill their clients by the hour, and that can create endless opportunities for them to get stuck for some pretty large debts no matter how careful they might be.
In most cases, these professionals will either attempt to collect any outstanding debts owed to them on their own, or they will simply write off the losses and move on. However, there is a middle-of-the-road option that many professionals fail to consider: partnering with a commercial debt collection agency.
If you are a business professional that is struggling with how to manage delinquent accounts, here are six reasons you might want to consider calling a debt collection agency today.
Focus on Client Work
Unlike many of our retail clients, business professionals typically don’t generate any income for themselves unless they are working for clients and creating billable hours. And since they aren’t able to be in two places at the same time, any amount of time they spend working on collections is naturally taking away from what they could be earning working for their clients.
In many cases, business professionals that we have worked with quickly learned that our contingency fees are often much smaller than the opportunity cost they are forced to charge themselves when they take their focus away from their client work.
In addition to the fact that handling their own collections is not cost effective for most business professionals, it is also incredibly frustrating. Most of the clients they are attempting to collect from have a long history of doing business with them, which can make for some serious bad blood in any interactions.
Passing the collection effort off to an agency is a great way to avoid any frustration or emotional attachment that you might have to a delinquent account or debtor. And a neutral third party will often have a better chance of working out a payment plan as well.
Better Success Rates
Speaking of having a better chance, having more experience with handling debt collections will always give you a better chance of succeeding in the future. So, having someone with a wealth of knowledge is always going to produce a better success rate than attempting to manage your own collections.
In addition to more experience, an agency will also have the tools in place to track and monitor the progress on all of your accounts without having to establish new procedures like you might have to by doing it on your own.
Understanding the Laws
Here in California, there are a number of consumer protection laws in place that restrict the ways that a creditor can interact with a debtor. Having an experienced debt collector in your corner is the best way to make sure that you are always going to fall on the right side of those laws, which can be tricky at times.
Whether you are an architect, accountant, consultant, or some other type of business professional, having accounts that fall into delinquent status can be a very difficult problem to deal with. But if you are able to establish a partnership with an agency that you can trust, you can spend your time focusing on what you do best.