Seasonal businesses operate for a limited time period every year. A landscaping company or swimming pool parts supplier, for example, won't get much work in winter. If you manage a medium- to large-scale seasonal business, collecting payments from your clients in a timely fashion becomes even more imperative. Here are a few ways a collection agency can help.

Why Are Finances Difficult for Seasonal Businesses?

A seasonal business won't have a regular, steady business cycle. Contracts will peak at a certain time of year. This can make cash flow a hurdle, impeding the ability to take care of basic tasks like paying employee salaries.

Seasonal businesses tend to struggle with cash flow specifically in the one to two months prior to their high season. By this point, they will have struggled with low sales in the preceding months, while also needing to build up inventory for the high season. 

Seasonal businesses can also be hit particularly hard by overdue accounts. Since their services or products tend to be in demand for only a short time period, it's easy for customers to forget or brush aside collection notices. These unpaid bills exacerbate the cash flow problem mentioned above.

Employing the manpower to chase money owed is difficult in peak season. During this time, resources need to be concentrated on meeting the high demand that occurs for only a short term.

How Can a Collection Agency Help?

A collection agency can take over the task of chasing invoices. By providing professional and polite yet persistent followup, they will ensure that your seasonal business gets overdue accounts paid. This then provides your seasonal business with the cash flow you need to get through the offseason.

Joseph, Mann & Creed of Twinsburg, OH, offers comprehensive accounts receivable management and debt collection services for businesses across the United States. They provide personalized attention, building lasting relationships with their clients that are based on trust and reliable results. Request a quote online. You can also call the collection agency at (216) 831-5626 to discuss your needs. For more information about this third party collection professional, visit their LinkedIn.