For many, collection agencies are the “bad guy”. They are the companies that make the lives of various individuals hell, and little else is said about the matter.
However, if one delves into this industry in greater detail, it’s clear that this is just the tip of the iceberg.
This is something that Brennan & Clark LLC have come to understand. While there are obvious benefits to businesses who hire these collection agencies, it doesn’t stop there.
This is the reason behind today’s article, as we aim to spell out the real truths about an industry which is so commonly misunderstood.
Of course, let’s start things off by looking at how this industry works. For years, a lot of businesses spent considerable resources chasing customers and clients for debt. They would supply a service, and fail to receive payment, and the costs in relation to both time and money would be huge as they bid to recover this.
It meant that there was a craving for a service that did this for them. This is where collection agencies stepped into the picture. They have come in, and performed such jobs for them. As soon as it becomes clear that a customer is struggling to pay a bill, a collection agency is instructed to try and claim this money. Of course, this comes at a fee to the business, but this fee is often tiny when compared to the resources that are usually required in chasing such debts internally.
Furthermore, rather than employing an internal team and having all of the employee costs to fund, the work is outsourced. From an accountancy perspective this is crucial and it means that not only are businesses tapping into specialised resources to recover debts, but they are saving money at the same time.
So, one might now question just how this benefits the customer? This is because, on paper it seems, they are just being hassled for payment of a debt.
While the above is true, it’s not as cut-throat as many believe. After all, the aim of everyone involved in this process is for the debt to be paid off. In an ideal world, this would be immediately, but those dealing with the case know that for whatever reason this might not be possible.
As such, for customers, they suddenly have a wealth of different payment options. Sometimes, this might involve the collection agency setting up a payment plan, while on other occasions it might result in them deferring the payment date. Regardless, they will tend to work with the customer, rather than against, to try and resolve the situation.
This is something that is often forgotten about. There is a mutual interest for the business to reclaim their debt and the last thing the collection agency wants is to claim through the legal process. Bearing this in mind, they will make as many provisions to help a customer out and ensure that they resolve the situation before a court case is even thought about.