After you have made the decision that self-employment is perfect for you, the next imperative step you should take is to develop a plan. For starters, you must include strong financial planning which involves methods for handling your personal financial situation. Unfortunately, data shows that several self-employed businesses shut down because of poor financial planning.
Setting up an efficient debt collection system is one of the most essential factors that need to be prioritized to ensure that your business will flourish. Chasing overdue payments from delinquent clients can pose a very challenging problem for your business, hence, consulting with a debt collection agency comes in handy to alleviate your business affairs’ state.
Hiring a debt collection agency comes with various advantages — from employing strategic methods to bind debtors to honour their contractual obligations to increase the odds of collecting delinquent debts. But as a small business owner, how would you know when it’s best to consult and hire a debt collector?
In this piece, Scott from JMA Debt Collection in Melbourne will be sharing with us some of the occasions indicating that you should call in the expert for assistance.
1. When Your Collection Efforts Failed
Debt collectors are professionals trained to deal with difficult clients. Debt collection agencies have extensive knowledge and immeasurable experience when it comes to collecting unpaid dues. As a business owner, your primary job should be running your business affairs and part of this responsibility is sorting which aspect of the business is better left to the good judgment of others.
In the case of debt collection, it is imperative to let the experts do the job. A trained professional is more equipped as he knows the best strategy to apply on how to legally bind debtors to pay their contractual obligations. Hence, if all of your in-house efforts have already been exhausted, it is time to entrust the task of collecting unpaid dues to the experts.
2. When the Client Absconds
If you have done all the means to contact and collect from your client and these efforts were all put into waste because the latter completely absconds, it is highly suggested that you hire a collection agency, forward to them the client’s account, and let them do the tracking and collection for you. Collection agencies have all the up-to-date methods in finding and tracking down your delinquent client.
After they’ve successfully contacted your client, professional debt collectors employ the most effective techniques that will legally coerce your clients to pay what’s due to you.
3. When Client Denies the Liability
When your customers start denying the liability for the debt, and/or is making unreasonable excuses to avoid making payment, seeking the assistance of a debt collection agency can be very helpful to protect your interest and to keep your business functions properly.
Debt collector agencies trained experts in order to communicate with the most difficult customers and understands that factors which hinder the customers from complying to their obligations. After assessing the client’s current circumstances, your debt collector will prepare a customised yet feasible solution that works best for both you and your client as well.
Indeed, there are various other factors you should consider when to hire the services of a debt collection agency. These factors also vary — depending on the nature of your business and the payment arrangements you have for each of your clients. Nevertheless, it is still important to note that the longer you wait before you consult with a debt collection expert and forward a claim to be collected from a delinquent client, the less are the chances of getting a successful claim on the account.