Category: News

5 Reasons Why a Small Business Needs a Collection Agency

Almost every business owner has encountered overdue accounts and unreliable customers can have a negative impact on your business. As a small business owner, you may not have the time to make frequent phone calls to collect debt and the older the debt gets, the harder it is to collect. Hiring a debt collection agency is one of the easiest and smartest ways to put the focus back on your business. Here are five reasons why you should hire a collection agency:

1. Let us be the professionals. Small businesses need every resource they have, most importantly their people. When an employee’s time is being spent on collecting bills that may or may not pay, that’s a valuable wasted resource. Let our team of experienced, professional collectors make the determination and bring money back to you for a small, contingent fee.

2. Seamless integration. Our hassle-free onboarding process takes less than 15 minutes to complete and will get the workload off your desk. Take out the task of bringing on another vendor and let us show you how smooth the process can be. Our online client portal creates less than an hour a month of managing our relationship while allowing you to hold us accountable. Sending accounts to collections and managing the relationship with your agency does not have to be a hassle, and we have designed an onboarding process to reflect that.

3. Turn your receivables into cash. Ultimately, receivables must be turned into cash to realize the value to your business. Our efficient collection process will return cash to you in 60-90 days from an account’s date of placement. This is our area of expertise and we treat your receivables as if they are our own.

4. Give us a challenge. We understand how many headaches a difficult debtor may cause you. We are experts in handling tougher accounts as we do not rely on a dialer, and we thrive with accounts needing a bit more detective work to solve. We have experience in operations to dig into each account and find the levers to get the money flowing back to you.

5. Get your mind out of collections and back into the business. As a small business owner, you have enough on your plate building the business and debtors can cause all kinds of problems and headaches. Our professional firm and polite approach will avoid negative outcomes with current and returning customers, and ultimately return your money, allowing you to do what you do best — build your business.

What To Expect From Our Agency

Debt recovery can be a difficult and time-consuming task, but at Turbo Debt Recovery we do things differently. The confidence, persistence, and core values of our team mean you get better results in less time than the competitors. These are the five ways our company goes the extra mile for our clients.

 

Liquidity Rate

Liquidity rate is perhaps the single most important aspect of any debt recovery agency. The liquidity rate is determined by the collections rate for the files placed with our office. The first thing to know is that it all has to do with timing. If debts are pursued and collected within 30 days of the account being past due, there is an 80% to 95% chance of recovering the balance in full. At the 90-day mark, the liquidity rate drops slightly to 75%. After 90 days, the chances of full recovery take a nosedive to 20-25%. By this time, consumer debtors could have filed bankruptcy, moved away and become harder to locate, or amassed debts to others. Commercial debtors may have sold or closed their company and may already have collections suits from other companies, pushing your claim to the bottom of their pile.

Knowing when to place accounts can often be a challenge. Setting an internal policy that’s followed can really make a difference. If the majority of your terms are on a “Net 30” time period, and you haven’t received any funds or communication by the 45th day (15 days passed the terms deadline), talk to us. You’d rather have a larger portion of something, than a whole of nothing.

 

Monthly Reporting

We always want our clients to feel connected to our company. This is why we send both a standard monthly report and a customized report for your business. The standard monthly report shows total inventory and how much of that is still open to collect. Your customized report is truly customizable! We can discuss liquidity rates, actions taken for each account, and discuss ways to improve your internal collections processes (more on that below). In addition, we can set up quarterly or biannual reviews to discuss big picture ideas and issues. While other companies may leave accounts open for six months to a year with few actions, little communication, and no results, we aim for transparency so that you know we’re truly doing everything we can for you.

 

Client Coordinator

We believe in person-to-person relationships, which is why our team of highly trained professionals are there for you every step of the way. As soon as you join us, we send a digital Client Services Manual. This document outlines our policies and procedures and answers many frequently asked questions. Additionally, it gives step-by-step instructions and guidance on

uploading accounts, fixing reporting errors, etc. You can use this as a reference, but we don’t stop our client relationship there.

The most important resource we provide to you is a designated coordinator to be your direct point of contact. When you call our offices, you’ll be met with a human voice, not a long list of prompts that take you to answering machines necessitating a long waiting time until a call back. Our employees don’t hide behind computers and emails. Building rapport with our clients (and the debtors) creates honest communications and better results.

 

Quick Results

The quicker you call us, the better chance you have of getting your claims paid quickly—that’s why we’re called TURBO Debt Recovery. Your accounts receive immediate personalized attention. Other companies will use automated calling systems to begin their collections process. Our team completes thorough research before reaching out to the debtor. Our goal is to weigh all the aspects of that debtors’ financial picture and work with them to create a connection that puts your outstanding balance at the top of their financial priority list. This is particularly important for persons who have multiple debts being collected on.

While it may be a victory for other debt collection companies to close an account after a year or year and a half, we demand results in a fraction of that time. In most situations, if a debt is not paid back within 60 to 90 days, it will qualify for legal action. There is no reason to wait on this for six months or a year. Our smaller team will outwork and outperform companies with 75 to 100 employees because we take personal interest in our clients and their debtors to create solutions for everyone.

 

Correcting Internal Processes

They say prevention is the best medicine and we agree. Our company prides itself on our consulting services. We review your in-office collections process to see how it works, what isn’t working, how much debt has been written off in the past, what your current liquidity rate is, and where your system can be improved. This service is available to any company, whether they have sent claims to us or not. The solutions we provide will create rules, procedures, deadlines, and consistency for your accounts receivable and in-house collections staff. Using our proven methods will reduce your number of outstanding debts and help prevent long waits for low rewards. Our goal is to make your bottom line go up!

 

 

We know you have your choice of debt recovery agencies, but we can provide what others can’t. If you want high liquidity rates, quick turnaround, open communication, and a better system for your company, we’re the debt recovery agency for you.