One of the biggest problems facing today’s small businesses is debt collection. The economy may have left many of your clients in a difficult position, but that doesn’t mean you should suffer. Business to business debt recovery services help you get paid before you find yourself with difficulties paying your own bills.
Debt collection for your business is a proven way to move late payments into the paid column. In fact, the right agency can help a client who is suffering financially work out a payment plan, potentially making them a better client in the long run.
Which types of clients are right for business to business collections?
If you analyze your late-paying clients, you’ll discover they generally fall into three categories. The first category is those who have valid financial difficulties. These clients have the desire to pay, they just don’t have the funds to make it happen on your schedule.
The second type of non-paying client is one who continuously juggles payments to make ends meet. You may be familiar with the person who ‘robs Peter to pay Paul’ when managing personal finances. This same mentality carries over into the business world and can cause you a wealth of problems.
The third type of candidate is someone who’s decided that your debt just isn’t worth paying. This client will go to great lengths to avoid your phone calls and communications –they’ll do anything to keep from paying their debts.
Clients in the first two categories offer you the best chance of getting paid directly and with a little finesse, you can work with them to pay off their debt or create payment plans. The clients in the last category, however, are better sent to a credit agency who can devote more time and energy to tracking them down.
Don’t hesitate
The number one rule in collecting on overdue accounts is: don’t hesitate. The longer you wait, the longer you go without that cash, and the harder it becomes to recover what you’re owed. Once you realize that an account is going to be a challenge to collect on, turn them over to your agency to start the official process.
Develop a relationship
When choosing a business to business debt collecting company, you don’t necessarily want the “bulldog” or most aggressive provider. The best providers build an honest, helpful relationship with your overdue accounts to get them over the hump – they don’t pester or bully them into payment.
Instead of ‘stalking’ past due clients, a good firm lets debtors know you are willing to work with them to help them pay their debt in full. That’s not to say the agency should be all sweetness and friendship: they should make clear that the late payments affect your bottom line, and you take collecting on what you’re legally owed seriously. Make sure an agency doesn’t leave threatening or excessive messages on your behalf: not only is that ineffective, it’s actually illegal. One simple message every day will help you work toward a resolution.
Count on a professional collector
The amount of effort required to follow up on bad debt and negotiate payment plans can detract from your day to day work. Business to business collectors can successfully get you the money clients owe in a timely manner.
Business to Business Collections Prices
Pricing details: We looking for a reputable business to business collections agency. The company that I found would only charge me if that were able to collect the money that I was owed. The price they gave us was about 15-20% of the money collected.
– Advertising/Marketing/PR, Sterling Heights, MI
Pricing details: We went with a credit agency that only take 15% of what is collected.
– Business Services, Lubbock, TX
Pricing details: We decided to work with a business debt company that did not require us to pay them any money up front. They would only be paid a percentage of what was collected.
– Health Care, Madison, WI
Pricing details: Found a business to business collections company that is only going to charge us $179 for 1 year and up to 4 collections.
– Manufacturing Industry, Kenosha, WI
Pricing details: We chose a credit agency that took 15% of the funds that were collected.
– Wholesale Industry, Santa Monica, CA
Pricing details: We went with a business debt company that is only going to charge us 18% of the total funds collected.
– Information Services Beltsville MD
Pricing details: My company needed the help of a business debt collecting company. We received information from many different companies and we decided to go with a company that only took 15% of the amount collected.
– Retail Industry, Okemos, MI
What other people are looking for
Looking for business debt recovery. A New Hampshire company used a credit card to book a group of rooms in March 2010. The bill was $3,963. The credit card was only good for $2,500 and we were unable to charge the rest of the debt. Additional authorizations were declined and we have been given the run around without any results.
– Travel/Hospitality Industry, Phoenix, AZ
Our company is in need of the services of a business debt settlement company. We have a company that owes us 6 invoices and they do not respond to our repeated attempts of contact. They do not answer any phone calls and do not respond to any written correspondence.
– Auto Industry, Englewood, CO
We are a technology company that did a project for an investment company. It’s been over a year now and they still not paid us in full. They owes around $5,000 and we need the help of B2B debt retrieval agency.
– Information Services, Medford, OR
We have a customer who will not take any of our phone calls and has not responded to any letters that we have sent them. We are actively searching for a business debt recovery company to help us get the money we are owed.
– Construction/General Contracting Industry, Glen Cove, NY
We have a customer who we have been doing business with since 2004. They currently owe us 5 months worth of invoices. This customer is still in business but they are dragging their feet when it comes to making a payment. We are serious need of an agency to help us receive these outstanding invoices.
– Transportation/Logistics Industry, South Richmond Hill,NY
We need the help of a business collections agency to help us collect from a corporation based in Kennesaw, GA. They owe us $1886.60, including $1063.80 in sales tax.
– Advertising Agency, Alpharetta, GA
We have been providing direct mail campaigns for a client of ours for 8 months and now all of a sudden they are refusing to pay the bill. We need an experienced company to help us with this overdue account.
– Advertising/Marketing/PR, Laguna Hills, CA