By Peter Parkinson
The lifeline of a Business is its Money. Without money, a business is totally dead. It is like having a body without blood. Just like blood supplies all the body cells with nutrients, money makes it possible for the business’ activities to take place. You want to buy a new machine? There should be money available for that. Generally, there should be money for all business operations at any given time. However, when you have too many debtors, you will also be operating on Debt. This is not what you want for yourself.
Debt recovery services
Recovering debts from your clients can be quite a tricky activity. This is especially so if you have fear that your clients are going to pull out from your business. This is the main reason why most companies go bankrupt because they do not want to offend their clients. It is worth noting that your client is also offending you by keeping your money. Always learn to differentiate between your personal feelings and etiquette from what needs to be done for your business.
This is not to say that you should get into a fight with your debtors over money. You do not need to storm their offices to get your money back. This is why there are the debt collection agencies. These businesses are great when it comes to regaining your money. There are so many other things that need your attention in your business. Therefore, you need not waste your time following up on delinquent accounts. You might miss new business while chasing after old ones that are not productive in the first place.
When should you start collecting?
Collecting debts is an intricate process that sometimes ends up requiring legal practitioners. The first thing that most people try to figure out is when they should start doing the collection. There are those businesses that will start collecting debt immediately they are overdue. There are others that will wait 30 days, 180days and some even a whole year. The time you want a debt repaid is generally dependent on your business and its policies.
Regardless of the time you decide to begin the debt collection hiring a Debt Collection Agency is going to come in handy. Of course, you will have to select from a number of such agencies. There are just so many of them you will be totally spoilt for choice. However, there are a number of things you can look out for to inform your selection. These include things like:
1. Licensure and insurance
2. Experience in debt collection within your industry
3. Track records
4. Communication- is the company easy to communicate with?
Taking these four factors into consideration is going to save you a lot of time and money. Make sure that you read through the contract before you sign it. The contract is part of communication. It should be in plain English, easy for everyone to understand- no jargon. Let the company inform you when you can expect to get your money. Hiring a debt collection agency is the best thing that you can do for your business’ financial management.
Peter Parkinson is a financial consultant and blogger. On his blog, he writes everything about financial issues from debt collection and debt management to bookkeeping for small businesses. Pay a visit to his blog to learn more.
This post first appeared on Mastering The Stock Markets With Quiet Fortitude A, please read the originial post: here