The Benefits of Working With a Third-party Collections Agency
Few businesses have an efficient system for collecting payments from delinquent accounts, which is understandable because it’s unlikely that they would be fully equipped with the necessary knowledge and tools. Working with a third-party debt collection agency has several significant benefits, including the ability to improve cash flows by recovering more past-due accounts in less time.
Reduce Staffing Costs
It can be expensive to maintain an in-house collections department that remains compliant with the Fair Debt Collection Practices Act (FDCPA). Collecting debt in-house requires spending money on additional employees, ongoing training and certifications, skip tracing databases, analytics software, up-to-date technology, and more. For most businesses, it’s far more cost-effective to work with a third-party debt collection agency that is singularly focused on implementing their collection strategy.
Collect More Debts in Less Time
Hospitals and banks don’t train their employees to work on landscaping; they hire professionals who already have the tools and expertise to handle the job. Unfortunately, businesses in many industries fail to take this approach with their accounts receivable. Collections agencies already have their own tools, methods, and databases to help them identify the accounts that are most likely to respond with payment to collect more debt in less time, all while remaining in compliance with the FDCPA. External agencies can also use the data they’ve amassed over the years to identify market trends that can help companies increase their cash flows.
More Effective Collection Strategies
Often, debtors take third-party debt collection agencies more seriously than in-house collections departments. Once an account goes to collections, it could lead to damaged credit or legal action. External agencies use smart collections strategies that have proven effective in a variety of cases.
Recover Global Debts
Companies that work internationally face additional difficulties in recovering payments from delinquent clients that are based abroad. Debt collection agencies have the experts, resources, and solutions needed to collect debts in both domestic and global markets.
Regardless of your industry, Altus Global Trade Solutions can help your company maximize its collections recovery while strengthening and streamlining its cash flow management system. Over the past few decades, we’ve collected over a billion dollars for our clients. Start a conversation with us today by calling 504-471-0948 or contacting us online.