5 reasons for engaging the services of a debt recovery company

Unpaid invoices are a thorn in the side of all businesses. Eager to bring the situation nearer to something more akin to control, more and more are now inclined to engage the services of an agent to enforce recovery of their outstanding debts from their debtors. Debt recovery services are now also increasingly called upon by companies that do not necessarily have their own internal debt recovery teams, or that simply wish to avoid expensive legal proceedings. Discover 5 good reasons and advantages for engaging the services of a debt recovery company.

1. Speeding up the recovery of your debts

When a company decides to outsource the recovery of its claims by calling on a debt recovery company, it makes the choice for professional skill and expertise. In fact, many small and medium-sized companies do not necessarily have the skills and the personnel in-house to handle this task.

Since recovery is an entirely separate discipline requiring time and attention it is particularly difficult for a company to manage its unpaid debts while meeting its daily professional obligations. Handing over this essential task to recovery professional assures a company that its unpaid invoice files will be managed by experts in the matter who know exactly how things should be done.

2. The authority of a debt recovery company

Engaging the services of a debt recovery company is also to call on the authority that it may represent to debtors. In fact if, after several reminders that have still failed to elicit any useful response on the part of a bad paying client, it is important to try and understand the reason for this silence. In that case the involvement of a specialist third party may be more effective. The debt recovery companies and agents have the necessary experience and assets to make contact with the debtor, understand the situation of both sides and suggest appropriate solutions in the most diverse cases.

3. Do not spoil the client relation

Contrary to what one might imagine, engaging the services of an agency specialized in debt recovery has a positive impact on your client relations. As a matter of fact, it should be borne in mind that a debt recovery company has the task of taking charge of the unpaid invoice files of the companies that engage its services. They seek to effect amicable recovery of the sums owed in a progressive manner, so as to manage as far as possible the commercial relation between creditor and debtor. Your products and services are professional, your recovery must be also.

It should be added that, in parallel, recourse to a bailiff or a lawyer to recover your debt claims will generally be less favourably perceived by the debtor. These are solutions that we use in less than one percent of cases, when dialogue does not work.

4. Free up internal resources

A further considerable advantage of entrusting the recovery of debt claims to a third-party agency is that it allows you to free up the internal resources of the company. To reiterate, recovery takes much time and discipline if it is to be effective.

On the one hand, assigning this task to a person having other priorities and not qualified for the job is to risk neglecting debtor management and, on the other, to encroach on the time initially provided for his other professional duties.

5. No cure, no pay: you pay for recovered invoices only

Most of the debt recovery companies apply the principle of “No cure, no pay“. This therefore means that the creditor must pay a percentage charged on the amount of the debt, but only once an invoice has been recovered.

This principle thus also allows, for instance, the creation of a genuine convergence of interests between the two parties. Furthermore, a debt recovery company, unlike a bailiff or a lawyer, always favours amicable solutions and will seek to spare you long delays and tedious legal proceedings accompanied by numerous costs that do nothing to help your situation.

You will surely understand that recourse to debt recovery company to solve your problems with unpaid invoices is probably the best way ahead. So do not hesitate to contact TCM if you require any further information about what we can do for you.

5 reasons for engaging the services of a debt recovery company

Unpaid invoices are a thorn in the side of all businesses. Eager to bring the situation nearer to something more akin to control, more and more are now inclined to engage the services of an agent to enforce recovery of their outstanding debts from their debtors. Debt recovery services are now also increasingly called upon by companies that do not necessarily have their own internal debt recovery teams, or that simply wish to avoid expensive legal proceedings. Discover 5 good reasons and advantages for engaging the services of a debt recovery company.

1. Speeding up the recovery of your debts

When a company decides to outsource the recovery of its claims by calling on a debt recovery company, it makes the choice for professional skill and expertise. In fact, many small and medium-sized companies do not necessarily have the skills and the personnel in-house to handle this task.

Since recovery is an entirely separate discipline requiring time and attention it is particularly difficult for a company to manage its unpaid debts while meeting its daily professional obligations. Handing over this essential task to recovery professional assures a company that its unpaid invoice files will be managed by experts in the matter who know exactly how things should be done.

2. The authority of a debt recovery company

Engaging the services of a debt recovery company is also to call on the authority that it may represent to debtors. In fact if, after several reminders that have still failed to elicit any useful response on the part of a bad paying client, it is important to try and understand the reason for this silence. In that case the involvement of a specialist third party may be more effective. The debt recovery companies and agents have the necessary experience and assets to make contact with the debtor, understand the situation of both sides and suggest appropriate solutions in the most diverse cases.

3. Do not spoil the client relation

Contrary to what one might imagine, engaging the services of an agency specialized in debt recovery has a positive impact on your client relations. As a matter of fact, it should be borne in mind that a debt recovery company has the task of taking charge of the unpaid invoice files of the companies that engage its services. They seek to effect amicable recovery of the sums owed in a progressive manner, so as to manage as far as possible the commercial relation between creditor and debtor. Your products and services are professional, your recovery must be also.

It should be added that, in parallel, recourse to a bailiff or a lawyer to recover your debt claims will generally be less favourably perceived by the debtor. These are solutions that we use in less than one percent of cases, when dialogue does not work.

4. Free up internal resources

A further considerable advantage of entrusting the recovery of debt claims to a third-party agency is that it allows you to free up the internal resources of the company. To reiterate, recovery takes much time and discipline if it is to be effective.

On the one hand, assigning this task to a person having other priorities and not qualified for the job is to risk neglecting debtor management and, on the other, to encroach on the time initially provided for his other professional duties.

5. No cure, no pay: you pay for recovered invoices only

Most of the debt recovery companies apply the principle of “No cure, no pay“. This therefore means that the creditor must pay a percentage charged on the amount of the debt, but only once an invoice has been recovered.

This principle thus also allows, for instance, the creation of a genuine convergence of interests between the two parties. Furthermore, a debt recovery company, unlike a bailiff or a lawyer, always favours amicable solutions and will seek to spare you long delays and tedious legal proceedings accompanied by numerous costs that do nothing to help your situation.

You will surely understand that recourse to debt recovery company to solve your problems with unpaid invoices is probably the best way ahead. So do not hesitate to contact TCM if you require any further information about what we can do for you.