Owning a business is more complicated than many would think and things get even more challenging and stressful when dealing with customers that have not paid their invoices yet. The first step is to send them a letter and remind them to pay for what they ordered, but what is to be done when customers do not take the letter seriously? The next step is to hire an agency that provides services of late invoice collection London and let professionals deal with everything. Here are the most common questions and answers in case you want to know more about late invoice collection agencies.
How many letters should I send before hiring a collection agency?
Many company managers ask themselves this question. They simply do not want to lose their customers, not even the bad-paying ones. However, you cannot be a permissive type of manager all the time, not because your customers will get used to it and try to take advantage of it in a bad way, but because this can seriously affect your company. Your profits will significantly decrease, your employees’ productivity will also drop and your reliable customers who pay their bills on time will consider resorting to another company, competitor of yours. Sending multiple letters to bad-paying customers may or may not help; this depends from one person to another. But if you sent couple of letters and received no response, consider hiring a collection agency.
What are the most important criteria in selecting a collection agency?
You want to ensure you will recover your money from bad-paying customers. In order to make things happen this way, you must hire a professional and reliable collection agency. But considering that the number of these agencies is so large, how could you know which one to choose? Several important aspects that need to be taken into account here are related to agents’ experience, training and expertise in the field, agency’s good reputation, transparency both in pricing and throughout the process of recovering your company’s money.
What strategy do collection agencies use?
Know that there are many ways in which agencies collect unpaid invoices from customers and each agency applies its own strategy. It depends from one collection agency to another. What is extremely important to remember is that you must work with an agency that is willing to present to you the technique they will apply in collecting the debts and to keep you up to date throughout the entire process.