Of course, unpaid invoices and debts that drag on for weeks, months or even years can have an even bigger impact on an organisation’s cash flow. Precisely where timely and efficient debt collection can help. Most businesses view professional debt recovery as something of a last resort option, despite its potential benefits.
Issues with DIY Debt Collection
DIY debt recovery is an option, but doesn’t tend to be the most efficient or effective option for most businesses. This is because in-house debt recovery has a tendency to be:
- Complex and time consuming
- Frustrating and distracting
- An extensive administrative burden
- Potentially costly if unsuccessful
The alternative is to consider professional debt recovery at a relatively early stage. Where initial efforts to recoup outstanding payments fail, the next step is to involve the professionals.
Far from an additional expense your business could do without, professional debt recovery can be beneficial in a variety of ways. The three most important of which being as follows:
1. Professional debt recovery can save you time
Financial costs are one thing, but what about the time and effort it takes to successfully chase debts? Even at a relatively low level, debt recovery can put an enormous strain on an organisation’s time and resources. It’s a distraction and a disruption you simply do not need. Hence, one of the biggest benefits of involving the professionals is the acceleration and simplification of the process. All while allowing you to focus on what matters most – running your business.
2. Professional debt recovery can save you money
Professional debt recovery services may not be free of charge, but can still prove the most cost-effective solution available. Again, you first need to consider the extent to which DIY debt recovery can be a huge drain on finite resources. In addition, the DIY approach offers no guarantees of a successful outcome. The bigger the debt and the more urgent the issue, the more money you could save by hiring help.
3. Professional debt recovery preserves relationships
Last up, it’s worth considering the fact that when you hire a debt recovery specialist, you effectively relinquish control of the recovery process. Roughly translated, it’s the debt recovery agent that communicates with the debtor and chases the outstanding payment – not you. This can make it much easier to preserve important business relationships and hold onto key customers.
While it’s important to give debtors a fair chance to pay, there comes a time when escalation is necessary. Unless you have extensive experience and expertise in strategic debt recovery, your business could benefit significantly from expert legal support.
For more information on cost-effective debt recovery for small and large businesses alike, contact a member of the team at Aristone Solicitors today.