10 benefits of working with a debt recovery agency part 2
Welcome to the final article in this two-part feature. In part 1 we talked about 5 of the key benefits of working with a debt recovery agency for efficient debt collection.
In this article, we pick up where we left off in part 1. To help you make a more informed decision about how you recover money owed to you or your business, here are another 5 benefits of working with a debt recovery agency.
Benefit 6 of working with a debt recovery agency: Often the invoice is paid quicker and more cost effectively than using other debt collection options
Cashflow is king! Afterall, what is a business without a healthy cashflow? There is no need to wait any longer than necessary to get paid for the service or product you have provided. Working with a debt recovery agency helps to recover your debt quicker in comparison to, for example, issuing legal proceedings.
This gives you peace of mind and it enables you to focus on other aspects of your business sooner than otherwise. Effective agencies take a proactive, professional approach. They combine it with knowledge gained through a significant number of years in debt collection to secure payment quickly.
No recovery, no fee
The charging structure offered by many agencies is very different to that of a solicitor. A solicitor will usually charge for the time spent working on the matter. The charging structure of a debt recovery agency is straightforward. Pre-litigation, you can expect to enjoy risk-free debt collection with a no recovery, no fee structure. Ordinarily a rate is agreed at the outset – a % of the monies collected on your behalf.
Benefit 7 of working with a debt recovery agency: Sound judgement and advice on the best method to recover the overdue debt
Every debt recovery professional has a different level of experience and set of skills. The most effective professionals are likely to have spent many years in the sector honing those skills. They say that to be considered an expert at something it takes 10,000 hours of deliberate practice.
In debt collection, to be truly successful you also need attributes that cannot be taught or developed – they are intrinsic.
We believe that putting in the time and developing the skills is only a part of the equation. A good agency has a team of such professionals who are qualified to offer sound judgement and advice.
Benefit 8 of working with a debt recovery agency: A panel of carefully selected solicitors with experience in all industries, with preferential legal costs
In post 1 we talked about how an experienced debt recovery agency works with a panel of trusted solicitors. The benefit to you, the client, cannot be overstated.
They will be experienced in their field and the agency will enjoy a strong professional relationship with them. The additional benefit is that the agency will often offer clients preferential rates on any debt recovery litigation matter.
You benefit from two minds at a competitive cost.
Benefit 9 of working with a debt recovery agency: Additional advice and information at no extra cost giving peace of mind that the quoted cost is the final cost
A professional debt recovery agency prides itself on getting the right results for clients. That’s why some agencies deliver a full debt recovery service which includes offering additional advice and information useful to you as you move through the debt collection process. The agency sticks to the quoted cost regardless of how much time is spent discussing the case and agreeing next steps.
Regardless of how much time is spent communicating or negotiating with your customer or how many times the case is discussed, and no matter how much advice and guidance is shared with you – the fee should not increase.
Benefit 10 of working with a debt recovery agency: Thorough understanding of their trade and up to date knowledge on sector developments, rules and regulations
Professionals within the debt recovery sector are proactive about keeping up with sector development, rules and regulations. Membership of the Chartered Institute of Credit Management demonstrates an intent to sustain a level of professionalism. For you, the client, it helps to provide reassurance about the quality, currency and validity of advice and information. It gives you an assurance that you are working with consummate professionals.
Professionals within the debt recovery sector are proactive about keeping up with sector developments, rules and regulations.
The points covered should help to make a more informed decision. If you are still considering your best option, take five minutes to read part 1 of this two-part series. Alternatively, take advantage of the time-limited offer below.
We hope you have enjoyed this article. If you would like to read about other issues which
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