Collections – a word that causes many business owners to flinch. Although the business itself may come easily, the receivables do not always follow as smoothly…or timely.
Yet, many businesses struggle with the idea of hiring someone else to collect those uncollected accounts receivable. Why? Perhaps the company had a poor experience when working with a firm in the past. Or, maybe the mere idea of losing a piece of the accounts receivable pie doesn’t seem worth it. After all, why should someone else get a piece of the action when they weren’t part of it, to begin with?
Contrary to the above concerns, handing over those uncollected accounts to a reputable agency can yield great results. There are also several other benefits. Here are a few things to consider:
Time and Money
Your company is a small business. Do you have it in the budget to pay staff to collect those uncollected accounts? Perhaps collection work is added to an existing employee’s workload. Will that employee have adequate time to dedicate to collection efforts? Or, perhaps your company is a larger business with ample staffing. Will the task of collecting these receivables remain a priority to those employees? How much time and money will it cost your company to properly train (and continue to train) these individuals to effectively collect these accounts?
Regardless of the size of your company, hiring another business to collected aged receivables will likely prove to be the most cost-effective decision for your company. The time and money it can take to properly train staff to effectively collect aged receivables can be burdensome. A firm experienced in collections already has trained staff in place with its’ focus on collections.
Knowledge and Resources
Knowledge and resources are critical components for any business. Does your company have the knowledge and resources to successfully collect aged accounts? Does your company have the time and money to sustain the knowledge and resources for collection efforts internally?
Rules and regulations are constantly changing. Likewise, so is technology. It is costly and challenging for a company to stay updated on both. It is difficult for one company to be an expert at everything. Thus, oftentimes a company will narrow its focus. This allows that business to become knowledgeable in a particular area in order to provide the best products or services to its customer.
A collection agency can take the hassle out of knowing all of the rules and regulations that come with collections. A good collection agency has the knowledge and resources to successfully collect aged accounts while at the same time adhering to all applicable laws and regulations. By working with a reputable collection agency, your business will save time and money in its collection efforts by using the collection firm’s knowledge and resources to collect those aged accounts.
Relationships are key. Our firm takes this seriously. When doing business with Beers Mallers Backs and Salin, whether it be for collections or in another practice area, you will develop a long-standing relationship with a law firm that will treat you with the courtesy and respect that you deserve. Our firm is experienced and equipped to handle creditors’ rights complex in nature. We also work with a collection agency affiliate to collect our client’s uncollected account receivables.
As an attorney with Beers Mallers Backs & Salin, LLP, my practice is dedicated to collections and creditors’ rights. Additionally, our firm includes a large staff and more than twenty other attorneys with various areas of legal expertise. Our firm is equipped to provide the very highest level of legal representation. We are a relationship-focused firm here to serve you.