Debt collection agencies can be greatly beneficial when it comes to helping businesses recover money owed on past-due accounts. Unfortunately, companies are often hesitant to hire a debt collector because of the negative stigma attached to them. This has largely been derived from widespread misinformation about what collection agencies do and how the recovery process works. Here are some of the most common myths and the truth behind them.

Debunking Misconceptions Regarding Debt Collection Agencies 

1. Using a Debt Collection Agency Will Make a Business Lose Clients 

One of the biggest misbeliefs about debt collectors is that they are aggressive and will use any means necessary to get debtors to pay, including harassment. In turn, business owners fear they will lose clients and their brand will be ruined. Reputable collection agencies not only focus on recovering debt but also maintaining good customer relationships. Instead of simply demanding payment, they will try to work with debtors to create an efficient payment plan.

2. Debt Collection Is Only for Large Companies & Extreme Cases

Companies of any size can have problems with delinquent accounts, and many small businesses take advantage of debt collection services. Additionally, smaller companies are at a higher risk of facing significant financial hardship when their cash flow is disrupted. The sooner a debt collector is contacted, the easier it is to resolve issues and collect payments. Waiting to take action can give debtors the impression a business isn’t too serious about recovering what they’re owed.

3. Hiring a Debt Collection Agency Is Too Expensive 

Partnering with a debt collection agency is an affordable option for any budget. Though every agency has its own payment structure, most of their revenue is generated from commissions on the debt they collect. This means the majority of the money will still end up back with the company. Also, while writing off an unpaid invoice can be done, the amount recovered and returned through collection services is likely to be much more than the taxes saved from a write-off. 

Once these misconceptions have been cleared up, business owners can be confident in their decision to work with a debt collection agency. If you need assistance collecting on outstanding invoices, so you can focus on your daily operations, contact Joseph, Mann & Creed. From their home office in Twinsburg, OH, they have helped numerous companies across the nation find increased success by streamlining their accounts receivable management processes, maximizing recoveries, and boosting cash flow. They can be trusted to provide professional services that won’t harm your organization’s reputation. Call (216) 831-5626 to request a quote, or visit them online to learn more about the value they can bring to your business.