- January 26, 2024
- Posted by: Bryan Dube
- Category: Uncategorized
For business owners, few tasks are as important yet challenging as consumer debt collection. Not only does collections have financial implications, it also has an emotional component that must be treated with tremendous respect and care. If you are struggling with how to proceed on consumer debt collection, consider five of the advantages of working with a trusted service provider—and the potential risks you could avoid.
Reason 1: A trusted service provider knows your industry
Let’s say you are a leader with financial responsibilities at a college, university or other higher education institution. Collections is a necessary activity within your portfolio of responsibilities, yet it’s also daunting. Where do you begin? How do you ensure you’re following the rules? A trusted service provider can help you navigate these questions and arrive at solutions that will ensure you are paid while also respecting the dignity and inherent worth of each person who owes money.
Reason 2: A trusted service provider understands the value of low-dollar claims
In other cases, the amount of money you are seeking to collect from any one customer might be pretty small. Sometimes, we call these low-dollar claims. Often, businesses and the service providers they hire simply ignore such claims. After all, small-dollar claims don’t add up to much toward the bottom line, right? Actually, that’s wrong. In particular, businesses operating on tight margins or whose inventories include primarily low-dollar products and services depend on every sale. Consumer collections ensures sufficient cash flow, benefiting all of your customers and avoiding the risk of a bad month that could suspend operations.
Reason 3: A trusted service provider recognizes collections aren’t a permanent reality
Just about all of us have fallen behind on bills at one time or another. We’ve questioned whether there would be more months than money in our bank accounts. The right consumer collections provider will treat your customers with dignity. For example, utilities want to maintain a good rapport, obtain payment and avoid the risk of suspending important services such as water or power. Missed payments are a blip on the radar rather than a way of life for the right collections company. This turns the conversation into one focused on getting back on track versus damaging a relationship with an otherwise dependable customer.
Reason 4: A trusted service provider has the right resources
Not every consumer collections company is able to address common yet problematic barriers, such as not sufficient funds (NSF) checks. These checks bounce because a bank account doesn’t contain enough money. By seeking out a collections business that has multiple tools and paths available, you’ll help your business continue operations while you secure the revenue you’ve earned.
Reason 5: A trusted service provider treats people well
Too many collections providers, especially in the medical debt ecosystem, are shady and disrespectful. At the end of the day, consumer collections is another way of saying “collecting from real people like you and me.” By finding a company you can trust, you will honor your customers, help them find the best strategy for paying off debt and strengthen your business relationship for the future.
No matter your collections needs, FCR Collection Services can help. We’ve got the right people, resources and—most importantly—heart for consumer collections. Give us a call at 877-326-4662 or visit our website to learn more. We look forward to helping you achieve your collections goals while avoiding the risk of a bad customer service experience for those you serve.