One of the most common questions I am frequently asked is from business owners, or credit managers who ask me how do I know when to place certain accounts with a 3rd party collection service?
My answer is always the same and I recently ran across an excellent article by Dan Jobrack who is the National Director of Business Development at Fidelity National Credit Services, Inc. "Know When to Call a 3rd Party Agency" is a great article in which ACA CEO Gary Rippentrop states “Debt collection reduces the risk of loss for business, permits greater business expansion; makes it possible for health care providers to maintain access to care in their communities and allows for the privilege and convenience of credit as a positive financial tool for American consumers.”
This is right on, and so many business owners do not realize this. The article also goes on to say “Timeliness is a major factor in the collection process” states Gene Sacco, Executive Director at FNCS. “The older an account the greater the difficulty in recovery.”
This is a big factor that many business owners either are not aware of or just don't understand. In 19 years I have been trying to stress this to people that once they are spending money to try and collect a debt, let it go! That doesn't mean you have to forget about collecting the money, but give it to a 3rd party, so you can run your business, make more sales and money while this account is worked by someone else.
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