4 Ways a 3rd Party Collection Agency Can Help You Grow Your Bottom Line
You just finished a big job and are ready to collect payment from your customer, but unfortunately, the payment never comes. Now what? Not only are you dealing with the emotional stress of another unpaid job, you also have to tip-toe lightly around the situation because you don’t want to lose the opportunity to serve the customer again in the future and also want to maintain your reputation for always putting your customer’s well-being first.
1. Reduce the Time Spent on Collecting Internally
As a business owner, you don’t need an explanation of the importance of your employees’ time. Not only do you have the cost of your employees’ salaries, but you also must factor in benefits, training, turnover, and beyond. Assigning an internal employee to spend time collecting can be a burden on your growing business, taking away their time and refocusing it on chasing down unpaid accounts.
2. Maximize the Amount Collected
Stick to your core competencies. Pest control is what you are good at, why you started a business, and how you make your money. 3rd party collection agencies don’t carry the biases of your aging accounts, touch each and every account, and know the correct formula in order to maximize the number of accounts collected. Tax season? You hire an accountant. Legal troubles? You hire a lawyer. Aging accounts? Partner with a 3rd party collection agency!
3. Don’t Sweat the Regulations
Believe it or not, there are a lot of regulations surrounding collections. Whether you partner with a 3rd party collection agency or not, you are required to know those constantly changing rules and regulations and can face major legal trouble if you don’t and are reported by a customer. Avoid putting yourself in an even larger financial situation than the aging account and trust the professionals at a 3rd party collection agency. Not only are they always making sure that they are following the new regulations, but they also carry insurance and are licensed in case anything goes awry!
4. Maintain Customer Relationships
Most aging accounts are just misplaced bills, and aren’t customers intentionally trying to withhold funds from your business. That being said, it can very quickly harm your relationship with your customer if a delicate collection situation isn’t handled with diplomacy and care. This is where not all collection agencies are the same. When making the choice to partner with a 3rd party collection agency, it is imperative that the agency understands the need for a diplomatic process, in order to not harm those valuable relationships that you have with your loyal customers (consider what programs the agency has in place, like A.R.M. Solution’s flat-rate program). Rescue the future sales from the customers with aging accounts by ensuring that your 3rd party collection agency carries those values.
Partnering with a 3rd party collection agency can not only grow your bottom line, but it will also save your employees time, allow you to stick to your competencies, keep your business above the law, and allow you to maintain your reputation as a customer-first business. PestRoutes works directly with A.R.M. Solutions because they provide a cost-effective and diplomatic approach to collections. To learn more about A.R.M. Solutions, visit the website at www.armsolutions.com or email Andrea Dahlgren, our PestRoutes/A.R.M. Solutions partnership rep, at firstname.lastname@example.org.