3 Benefits of Debt Collection Services for Small Businesses

Small businesses need funds to operate properly, and what other than debt recovery can keep it running. Well, modern-day terms and methods, such as receivable turnover ratios offer a little relief, given that some of your debtors pay quicker, you cannot ignore the pain caused by delinquent debtors and less reliable customers.

Obviously, when you need funds to invest somewhere else, like your new departmental store, you tend to get infuriated over unpaid customers depriving you of your rightful money. And you know how hard it is to recover.

Locating, informing and calling customers takes time, and suing them takes more. What else can you do? Perhaps, you should call a debt collector Singapore agency.

Successful Debt Recovery

Do you know that US collection agencies recover as much as $50 billion annually? That’s efficiency! And more interestingly, customers cannot complaint how they were treated.

Finding experienced service in Singapore is difficult, but this is also important for your prestige. In educated countries like Singapore where customers are more than aware of their rights and duties, using black hat tactics can go against you.

For successful debt collection, agencies always look for reasonable ways to encourage customers repay their dues.

  • Professional collectors may take aggressive but legitimate actions against debtors.
  • They may involve credit bureaus and report unpaid debts, which is absolutely legal.
  • Customers likely to negotiate and repay their dues, because they don’t want to ruin their credit scores.

Legal Protection

It’s a universal statement, “You should fight for your right”, but things are different when it comes to getting back your rightful amount. Customers know they’re protected by the law and can exercise their rights if creditor or his representative intends to cause them any harm. However, as a debt collector, know your debt collection rights in order to protect your agency at the same time. Other than causing harm, also take note of the crimes that a debt collector should never get involved in.  

You cannot use force to recover your debt, but you can always count on expert debt collector who knows better ways. Why?

  • Debt collectors are usually familiar with collection laws and they work for a licensed company.
  • Instead of forcing customers to repay, professional debt collectors use latest software to assess financial position of the intended customer. They’re smart enough to prove that the customers can, by controlling unnecessary expenses, repay your loan.
  • Agencies with well-trained staff legally compel the customer by seizing his property.

All of these efforts require a certain amount of time, and obviously, you’re too busy to pay attention to all the documentation and recovery. So, play safe and let the “good guys” handle the “bad stuff”.

Flexibility

What is the probability of getting the whole sum of money back, if the customer is not in a condition to repay? Will you make it easier for him and allow him to repay in installments? Or will you reduce the amount (say, the actual cost of goods sold)?

It depends how long it’s been. Ideally, you’d prefer to get back the entire sum, plus the expense incurred on recovery (time, interest and other costs). Anyhow, if your debt has become too old – say, a year old, you’ll be happy to recover the cost.

  • An experienced agency can prepare a suitable debt recovery program that’ll favor you and your customers.
  • Alternatively, you can sell those old debts to recovery agencies and reduce your losses.