The facts show third-party debt collections provide a needed service for businesses of any size.
How much do you really know about collection agencies and how they work? Unless you’ve partnered with a debt collection agency, there’s a good chance that you’ve been misled about how the debt collection process works and the impact it will have on your business.
Here are some common myths about the debt collection industry:
- Debt collection agents are a rough-around-the-edges crew that bullies people. TSI’s interactions with customers are always diplomatic. We work WITH your customers to get them back on track.
- Debt collectors will try anything to get money. Debt collection is a strictly regulated industry. Professional debt collection agencies stay current with all applicable laws. TSI’s commitment to compliance means customers are always treated with the utmost respect, while your brand is protected from costly compliance violations.
- It’s better to take the tax write-off; hiring a debt collection agency is too expensive, even for large companies. Partnering with a professional debt recovery company is an affordable option. Writing off an unpaid invoice may be helpful, but collecting on the debt is even better. Although collection agencies charge for their services, the amount collected and returned to you will likely be more than the taxes saved if you write-off the debt. TSI offers affordable fixed-fee pricing on early-stage delinquent accounts and contingency-based fees for your more challenging or older accounts.
Debt Collection: Take a Closer Look
If your company has been handling collections in-house, you already know that debt collection is governed by a variety of local, state, and federal rules that prohibit and regulate how customers are approached for past due balances. In fact, debt collection is one of the most regulated industries in the United States. These rules prohibit collectors from behaving aggressively or inappropriately with consumers; they even govern when a debt collection agency can contact the past due client.
According to Inside ARM, the debt collection agency industry is a valuable asset to improve the bottom line for businesses in any industry. Their report shows that the industry regularly returns around $39 billion annually to companies that offer consumer credit.
Debt collections activities help replenish the bottom line of businesses that struggle with a high volume of bad debt. Quite simply, the collections industry reduces the risk for businesses offering consumer credit, something that is imperative for keeping the economy going. Companies that seek a healthier bottom line use debt collection companies to recover some of the most difficult past due balances, which frees up internal teams to focus on the job at hand.
The types of debt collected impacts companies of all sizes in the following industry sectors:
- Financial services
- Student loans
- Small- to mid-sized business
When debt is collected businesses can keep a positive cash flow which not only means they can keep prices low, it also helps ensure the overall success of the organization.
How Could a Debt Collection Agency Help your Business?
A reputable debt collection agency like TSI can deliver outstanding results. Our sophisticated collection activities use a data-driven, client-centric approach. Beyond a basic debt collection agency, TSI can also provide end-to-end strategic accounts receivable management.
TSI can maximize recoveries and boost cash flow, streamline your accounts receivable management processes, and reduce internal expenses and administrative responsibilities. And because TSI keeps a focus on the customer experience, our services will not damage your organization’s reputation.
A quality debt collection service like TSI helps improve the bottom line of the businesses we serve. TSI clients recognize this impact, and we’re proud of these partnerships that are a win/win. Contact TSI today to learn more about our services and the value they can offer your business. For more information, contact us. We’re ready to help!