Considering increasing profits through collections?
When it comes to increasing profits for your business, have you considered working with credit collection services? Indeed there are ways to increase profits through cutting expenses and increasing sales. The funny thing about both of those concepts is that they take time, and cutting expenses can lead to decreased performance issues if the cuts aren’t made correctly. One of the easiest ways to increase profits is to minimize the amount of bad debt on the books.
Consider an alternative approach
Through the conversion of bad debt or the elimination of it, profits on the income statement will rise quickly. Consider utilizing a flat rate based credit collection service to collect on your outstanding accounts receivables, and reallocate, or eliminate costly employees. Most modern debt collection services utilize advanced communication tools to help you collect more money.
Use Credit Collection Services instead of hiring more labor
Think of it like this. Let’s say you’re looking to hire someone to assist your business in collections and the going rate is $17/hr. By the time you are done paying taxes, this employee is going to cost your corporation around $4,000 a month. In order to hire someone, you need to interview, and then train the individual with hopes they will pay for themselves within a short time frame.
In stark contrast, a credit collection service comes fully trained in all laws related to collections, including the new 2020 Consumer Financial Protection Bureau laws. One of the most compelling reasons to use a debt collection firm is to gain access to their technology. Such technology is mass text messaging features, and advanced database management. In conclusion, hiring a debt collection service can potentially cost you less monthly and provide you access to technology that would cost thousands and take a long time to implement.
What other benefits are there to outsourcing?
In addition to being able to save your company money, outsourcing provides you with probably the most important aspect of collections, which is reporting. Any decent financial controller or CFO wants to make a decision on the aging receivables of a company. Working with a collection agency allows you to receive extremely detailed reporting on all of your companies accounts receivables.
Just how is this done one ask? It’s simple by organizing your companies data and managing it in secure databases, its easy to build custom reports for clients. Such reports include details on the amount, payment, lack of payment, or legal status of an account. In addition, details such as the number of calls, letters sent, and text message communication. By utilizing secured and recorded transactions, legal proceedings are a breeze when working with a good credit agency.
Great So What’s Next
Prior to getting started, it’s important to understand your business and what type of credit collection services you require. If your business provides goods and services directly to consumers, then you will require a Consumer Collections agency to assist you. Should you have a business that provides goods or services to other businesses, then a Commercial Collections agency should be able to assist you.
If you are ready to start seeing a better return on your current unpaid accounts, reach out to Amplicon today or Call Us at 949-508-1095.
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