Companies are faced with a dilemma when debtors refuse to pay up: should they sink more time and money into collecting payments, or walk away, cut their losses, and hope they eventually pay up? The former risks losing even more resources without any guarantee of success, while the latter establishes a dangerous precedent and means payment will be unlikely.
Thankfully, there’s a third option. Here are three reasons why it’s smart to hire a professional debt collector.
1. Experience and Skill in Skip Tracing
Companies specialize in their industry and niche. Technology companies understand their sector and what their product means for consumers, while artisan furniture builders know how to craft beautiful wooden chairs and tables. Neither company specializes in locating debtors who refuse to make good on their debts. Nor should they — that’s not their niche.
Leading debt collectors like Summit A*R have a skip tracing department run by a fully licensed private investigator who knows how to find debtors on the lam and their assets. Don’t waste money and time relying on a company that merely uses free resources available to anybody.
Private investigators working for the leading debt collectors can track down runaway debtors sooner and more effectively. They have the skills, experience, and resources that other departments don’t have.
It may be rare to find a debt collector with a private investigator in-house, but the best ones have them, and don’t even charge you extra for their services. They deliver results without making clients calculate risk-reward or shell out more money on top of what they’re already paying.
2. Better Long-Term Relationships
Asking debtors to pay up is an invidious task: they may resent it. Nobody loves being cornered and asked to make payments, even, or perhaps especially, if they really do owe the money.
Some debt collectors use aggressive tactics that undermine any future relationship with debtors. Things like robocalls, late-night calls, threats, or angry language leave a bad taste in a debtor’s mouth, and they seldom want to keep doing business with the company afterwards.
The best debt collectors never resort to such ugly tricks. Instead, they treat everybody with dignity and professionalism. They never judge the debtor. They view their job as finding a quick, effective resolution between two parties, so everybody can move on sooner.
Thankfully, the debt collectors who value dignity and respect also tend to collect more than the national average. Sometimes even nearly double! Choosing between financial health and dignity is a false choice — look for a debt collector that lets you have it both ways.
3. Press the Right Buttons
The leading debt collectors know how to motivate debtors effectively. They will make prompt reports to all the major credit bureaus, so there’s an official record of the debt being unpaid.
Once the debtor realizes how much harder and more expensive it will be to secure a loan in the future, they usually start to pay up sooner and of their own volition. Changing the scenario so it’s more cost-effective for them to pay you gets results quickly. Finding a debt collector that can motivate debtors is key.
You’ll see results in no time, and will be able to get back to navigating your company without having to constantly look backwards in the rear view mirror.
Hiring a debt collector to scoop up money that you should already be in your accounts may seem counterintuitive on one level, but it will make your life easier and your books healthier. Just make sure they have all the qualities described above.