Moon Twp, PA (PressExposure) August 20, 2009 -- Simple mention of the words "collection agency" strikes fear in the heart of many. It is quite common for starting small business owners to build a large amount of debt. If you have been down that road before, you may remember the feeling of never wanting to answer the phone, for fear that it might be a collection agency calling you. That feeling could also be just because you don't know everything you need to know about collection agencies. You do need to be educated, though, because unfortunately there will come a time for almost every small business when they will encounter customers that will not or do not have the means to pay you.
No one WANTS to hire a small business collection agency, but you better consider it if you intend on staying in business. You will want the money that is owed to you and you will need help getting it. After you take the initial steps on your own to send out friendly, and perhaps even not-so-friendly, payment-due reminders, it's time to take it to the next level and get some help, which means going to a collection agency.
While professional collection agency services will cost more than your initial methods (sending your reminders), they will also be a lot more productive for you. In fact, the money you will collect (which you wouldn't have collected otherwise), along with the time you will save from not writing more pointless reminders will equal value that far outweighs the costs you incurred. And if you compare the agency fees to the hourly pay of your employees, you might even find that you are getting yourself quite a deal! So be sure and consider all the costs involved, and not just the checks you are writing to collection agencies. Remember, time is valuable as well. The return on your investment is GREAT, especially when you factor in the money collected by the collection agency (which you would NOT have received otherwise), the time NOT wasted by your employees and the worry you and your employees will not have to cope with.
At the end of the day, the success of your business has to keep sight of the main goal, MAKING MONEY. Let the accountant handle your tax matters, let your maintenance men handle your building repairs, and let your small business collection agency handle the collecting of your debts. Don't go another billing cycle without one!