The Clear Benefits of Outsourcing Your B2B Debt Collection

There is no doubt in our view that smart business owners are outsourcing their B2B debt collection process to avoid the task of collecting B2B invoices that are beyond terms. This means they can deploy resources on more worthwhile business tasks. Collecting debt doesn’t create revenue, it’s a cost to your business.

Key benefits of outsourcing your B2B debt collection

So, here’s a list of the key benefits of outsourcing your B2B debt collection which will save you time, money and hassle!

Reason #1 | Saving the Cost of Late Payment

Recovering long overdue B2B debts can be a cumbersome process. It does in our view require dedicated and trained staff to do the work which is a direct cost out of your businesses bottom line. Your salary costs (usually your largest overhead) will be impacted by the gross salary plus tax, Ni and pension, along with provision for sickness and holiday resilience cover. It all adds up, doesn’t it?

Outsourcing the debt collection task to a professional debt recovery agent will incur minimum costs and will help you take advantage of only paying for debts that are collected, rather than being stuck with a monthly cost that is payable regardless of the cash collected.

Reason #2 | Increased Debt Recovery Results

Debt recovery calls for a wealth of skills and expertise in recovering debts in various circumstances. It’s a no-brainer that when a professional debt recovery agent is hired the rate of recovering your outstanding debt is much higher. This means you can recover debts faster and with fewer arrears at any given time. The right debt collection agency partner acts as an extension to your company and is well versed with the best practices for collecting outstanding invoices. This means getting your invoices paid faster and with a higher percentage of success.

Reason #3 | Maximize Your Revenue

Every minute spent attempting to collect invoices is a minute spent not generating future income.

Outsourcing your business’s debt collection can be a worry because obviously, no one wants to upset a customer. But the benefits of outsourced debt collection can outweigh the negatives. The decision to outsource enables you to concentrate on your company’s strategic goals, productivity and providing a better customer service experience. An expert debt recovery agency partner, such as Shergroup, will work tirelessly to take this challenge off your desk and ensure the debt owed to you is paid in full and with any interest, you are entitled to such as under The Late Payment of Commercial Debts (Interest) Act.

Reason #4 | Improves Cash Flow

Perhaps this is the best reason for choosing to outsource your delinquent accounts. It frees up your internal staff and improves your business’s ability to maintain a positive cash flow. This simplifies the collection constraints and enables you to do what you do the best, while a professional take care of the collection process for you.

Reason #5 | No Debt Recovery, No Fee Paid

Life becomes easy for you when you outsource debt collection services to an agency. A collection agency employs its in-house team for collections. Also, the collection staff are paid a set salary depending on how much debt is recovered by them. They use the latest debt collection tools to track down the debtors who have disappeared, or who are avoiding contact. Reputable debt collection agencies work on a commission basis, simply charging you for a successful collection.

Summing-up

The key to running a successful business is to maintain a healthy relationship with your clients even when they are reluctant to pay. Outsourcing your debt collection to an agency allows you to distant your business from playing the bad guy. You can limit your conversations with the clients to the goods and services you offer. An established debt collection agency will build a rapport with your clients promoting positive business relationships and better client retention.

No matter what the size of your business is, getting paid for your work promptly is fundamental to maintaining a healthy cash flow. Shergroup can add value to your business as an outsourced debt collection partner. We can help you keep your cash flowing.

So why not consider boosting your revenue, productivity, and staff morale by outsourcing your late-paying customers to us and getting the problem off your desk?

Send us a message at [email protected] to set up a meeting with our Business Solutions Advisors to discuss how to get started.