Many people are familiar with debt collection agencies, particularly for big businesses like government entities, financial institutions, and healthcare companies. But even small businesses can struggle with customers who won’t pay, and an experienced, reputable collection agency has the tools and training to help businesses of all sizes. Here are three reasons small businesses benefit from professional debt collection.
Helps You Stay Liquid
Small businesses often have limited capital, and that means every dollar coming in matters. When customers aren’t paying their bills, the effect on your ability to successfully run your business can be detrimental. Even one customer who doesn’t pay has an impact, and the effect is cumulative when you’re dealing with a handful of unpaid invoices. Consider what all of that owed money means for your small business — inventory you can’t stock? Payroll you can’t meet? Marketing and advertising efforts you can’t continue?
By working with a reputable debt collection agency, like Business & Professional Collection Service here in Reno, you can focus your efforts on new business while our experienced team applies its extensive training and expertise into maximizing your return.
Frees Up Your Resources
No matter the size of your business, having customers who aren’t paying their bills amounts to the same headache. It’s a drain on resources, which is particularly problematic for small business that often operate on shoestring budgets with a small team. Allocating a team member toward chasing down customers isn’t always feasible, and it’s rarely effective. Most small businesses simply don’t have the resources for this kind of detective work, and they almost certainly don’t have the skill set.
An experienced debt collection agency understands the industry — after all, it’s what they do. What’s more, a reputable agency can successfully and ethically collect on your behalf without damaging customer relationships. For small businesses, that’s particularly important.
Keeps Your Business Growing
Bringing in a professional collection agency means you can focus on nurturing and growing your business. Small businesses need capital to continue growing, and unpaid debt is a major roadblock. Less than 30% of debt collected by agencies is past due by 90 days or fewer, but even one month can be a very long time for a small business waiting to be paid. When you partner with an experienced debt collection agency, your small business is free to focus on new business. It’s reassuring to know that a professional is focused on collecting on your behalf.
The Takeaway
No matter how big or small your business, you deserve to be paid for your products or services. If you’re owed money from customers who won’t pay despite your best efforts, bringing in a professional is the easiest, most effective way to maximize your return. In Reno and Sparks, contact Business & Professional Collection Service today.
