Can a collection agency help me keep my customers?

Utilizing a reputable collection agency for your all business or larger organization is one of the best ways to dramatically improve cash flow.

And, it’s also a strategic tool in retaining your customers even if they do owe you money.

Professionally trained debt collectors understand how to listen, show empathy, understand individual situations and take the time to solve problems with consumers. If your customers are facing financial difficulty, a debt collector can actually help your customer navigate the complexities of being in debt.

Want to know more about how a collection agency can actually help your business keep customers? Check out some of the reasons below.

A level of professionalism and diplomacy

If you’re working with a reputable collection agency that has a core set of values, one of their top priorities aside from getting the money your business is owed, is to help you retain that relationship with your customer. A debt collector today understands they have an awesome responsibility to not only get you paid but to keep your client base intact.

Helping your customers navigate tough situations

When most consumers receive a call from a collection agency, they just expect a demand of payment. But that’s not necessarily the case anymore. If

your customer hasn’t paid, they are most likely struggling to meet their financial obligations. And many do not know where to turn or what steps to take. A professionally trained debt collector can help your customer navigate that challenging financial situation and work together to resolve the matter. Many consumers ignore debt collection calls because they don’t know how to handle them. But when a collector helps somebody out of a tough situation, that looks good on your business.

There are times when debt collectors alert consumers to fraud or identity theft. It may appear that the consumer has an outstanding invoice, but after further investigation, it can sometimes become clear that the consumer did not incur that charge. They would not have known that without the help of a debt collector.

Getting creative with paying off the debt

We hear it all the time from consumers. “I’ll just pay this in full.” And a lot of instances, that works out just fine because the overdue bill may be an oversight. However, when a professionally trained debt collector realizes that this may put them in a more difficult situation in the future, that collector will offer alternatives. Many cases, it’s paying off the debt overtime. This can prevent any additional friction between your business and the consumer and it goes a long way in helping you manage a continuing relationship with that customer. If you can accommodate a customer during challenging times, most will appreciate that.

Mediating a dispute

There are many reasons why a consumer might end up having an account in collections. One of them is when they are disputing a bill or individual charges. When that happens, sometimes consumers refuse to pay the entire bill. If that continues, a business will send that account to collections. Consumers want to tell their side of the story and oftentimes they do that when they are contacted by a professional debt collector. That collector can remove the emotions out of a dispute which can reinforce a level of professionalism and help your business maintain that trust with that consumer.

Providing grace to a consumer when needed

There are instances where now is not the best time to make any progress with the consumer. For example, we conduct a fair amount of Funeral Home debt collections, and those accounts must be handled carefully. A family member may be confused or in distress and it is up to a professional debt collector to offer some grace to that family member in those situations. There may be confusion as to who is responsible for paying for Funeral services and our collectors need to make the decision about contacting that person in the near future.

When you outsource your late and unpaid invoices to a debt collection agency, you’ve not only improved your much-needed cash flow but also retained your customers.