If you have your own business, you probably recognize it: one of your customers doesn’t pay, even after several attempts to contact and remind them.
If a friendly reminder isn’t enough, you need to take other action. There are different ways, but one of the most effective ways is to use a debt collection agency. In this article, we give you 5 reasons to use a collection agency, so that you can finally get the money the client (s) owe you.
Just as you have the expertise to run your business, debt collection agencies have the expertise and experience to collect unpaid debts as quickly and efficiently as possible. No wonder using a collection agency increases the change in your credit collection. Most debt collection agencies have years of experience in debt collection, so don’t be afraid to ask for their help. Their expertise will help you collect the money you are owed.
- The right resources
Collection agencies (Dutch: incassobureau) have much more resources than you. There are different tools and strategies that make debt collection much easier, and most debt collection agencies have access to many of these tools. For example, debt collection agencies have access to public databases and credit reporting devices, so they can find a customer who owes you money.
Every form of contact the collection agency has with your debtor (s) is documented. These detailed records and documents provide enough evidence if you ever decide to sue the debtor. The documents show that considerable efforts were made to contact the debtor and collect the debt, but they did not cooperate. If you have to do all of this yourself, it will take a long time.
- Legal protection
Another reason to use a collection agency is the legal protection they can offer you. There are many laws that govern how debts are to be collected. Breaking any of these laws is the last thing you want, because you don’t want legal trouble. There are debtors who are very familiar with these laws and you don’t want the reverse to happen – they are suing you because you broke one of the laws. If you use a collection agency, you can minimize the legal risks associated with collecting your debts.
- Regain your concentration
As a business owner, there are a lot of things that need your attention. If you have to do the debt collection yourself, it will take a lot of time and effort. Your concentration and that of your colleagues will no longer be focused on the core business activities of the business and this is the last thing you need. If a debt collector (Dutch: deurwaarder) can do the collection for you, you can focus on what really matters: running your business.
We wish you the best of luck with your debtors and of course we hope that you will soon get back the money they owe you!