More than seventy per cent of small scale businesses close down within the first two years of operating. Although this may not surprise many due to the constant challenges that Business owners face on everyday basis, however the most common issue is of ‘cash flow’ as to why numerous small scale businesses close their doors on daily basis.

Whilst there persist many reasons why businesses get impacted by cash flow, the most bothering part is it is often aspects of the business that can ultimately be managed and controlled that causes business closure. Small and Medium Enterprises require not only cash flow to survive, but to prosper too. Without a good cash flow position, you’re neither able to let your business operate, nor are you able to fulfill your obligations as a business owner such as paying suppliers and employees.

Irrespective the size of your business, one important function that is supreme is credit control and invoicing. Therefore, small businesses need to ensure they have proper procedures and processes in place to help limit bad Debt and slow payers to facilitate a healthy cash flow position .Limiting bad debt essentially dominates the lastingness of your operations.

Whether you possess a fully dedicated accounts department or simply hire someone to manage your invoicing and bookkeeping , there is a function that most of the businesses overlook that could have potentially rescued them from closing down and that is partnering with a Global Debt Recovery Firm which is extremely professional to assist with their slow payers and accounts receivable management.

Most of the people view partnering with a debt collection company to be a last resort to help with recovering bad debts and slow payers, however by adding a creditable collection firm to your existing team, will ultimately make sure a healthy cash flow and will remove any nasty surprises, allowing you to concentrate on growing your business and not worrying about following payments from customers.

With certain businesses realizing the benefits of outsourcing some components of account receivable functions to a debt collection agency, we have outlined 5 key reasons why this could be a great business investment move for you to make.

1. Agency Lets You Use Your Precious Time Wisely

Collecting money is the main focus of the business. Companies spend a lot of time chasing debts to attain a common objective – to get paid as soon as possible. As an owner of the business , you certainly want to focus on handling your business – especially in areas that enhance growth, not by spending effort and time chasing payments. Engaging a collection company can chase the debt for you and help you arrive at a beneficial conclusion, whilst tackling with all the important administration on your behalf throughout the entire process.

A professional collection company possesses experts in collection field, whilst they also own access to best technology that you wouldn’t have access to to get you paid swiftly.

Debt collectors are tactful, sound negotiators, persistent and even have the complete understanding of human psychology. More importantly, collection experts own the most up-to-date knowledge of debt collection jurisdictions, procedures and legislation, so they deploy and know proven recovery methodologies to make your debt a priority.

2. Agency Is Influential

The coming of an official debt notification from a reputed collection agency is more impactful than an email or a phone call from your accounts team or you. The psychological element behind getting a third-party involved is your taking your accounts receivable very seriously. Furthermore, the debtor is aware that he cannot indefinitely ignore a courteous demand for payment, because he knows very well that the collection agency has certain procedures in place to follow up till the debt is settled.

3. Agency Is Efficient

Additional cost involved in hiring a Debt Recovery Agency might make you hesitate, however it’s actually a more economical option as it recovers huge amounts owed to you. Additionally, It can be quite expensive to put up entirely your own internal collection system, so this most likely should not be your option.

Even if your credit controller works extremely hard for recovering money owed, there will still be chances when a debtor simply refuses to pay. If this occurs, you’ll have to start further collection proceedings , so by having a diligent and dedicated partner already established , you’ll be able to curb these issues and have someone on hand already to handle the issue promptly before it goes out of control.

4. Agency Conveys Serious Payment Terms

A debt recovery agency conveys a very clear message to those you do business with that you take your payment and account receivable seriously. It shows that your expectations from your customers are to abide by the terms and conditions set up between the two parties.

Remember, being the business owner, you might give up on debts that remain unpaid for a long time and write-off the debt, however partnering with a debt recovery agency can help you overcome this need and collect the money owed to you very fast.

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