It is annoying for any company when customers pay late, but even more annoying when debtors do not pay at all. In that case, it is often even necessary to call in a collection agency after payment reminders and demands have been sent. They then take on the responsibility of recovering the debt from the debtor.
Corporate debt collection agencies
A collection agency is a company that tries to collect a debt from a debtor on behalf of your company. However, these companies are bound by certain rules when collecting outstanding invoices. In practice, this means that collection agencies request debtors in writing to pay the outstanding invoice. Such a company may not take any coercive measures and is therefore limited in this respect. If payment is not forthcoming, the next step is to call in a bailiff’s office to start legal proceedings.
Choosing a collection agency
When hiring a debt-collection agency, it is important not to take your chances with just anyone. After all, you are handing over your accounts receivable management and your customers to a collection agency. Therefore, always ask for experiences, because accounts receivable management is rather delicate work and can damage the image of your company.
The friendly alternative to debt collection agencies
It is, of course, best to maintain the customer relationship and, in that respect, there is an attractive alternative to hiring a collection agency. Payt offers a seamless follow up after the automatic reminder procedure in the form of a cash collection software to get your invoices paid. You do not outsource your accounts receivable management, but you retain control over the process. In this process, collection costs are charged to your customer and - for the first time - you communicate with the Payt logo. This way, your file remains complete, including all correspondence that has been exchanged between you and your customer since the first invoice. You will receive the collection costs charged to your customer directly on your own account. To preserve the customer relationship, you could even choose not to charge them if the customer pays the principal sum after all. You remain in control and you decide. You no longer need a collection agency.
Accounts receivable management software makes it easy for your company to make contact with debtors and that reduces the number of defaulters. In most situations, you will no longer need a collection agency because your customers will pay on time more often through smart debtor management. This also has the advantage that the relationship with your customers is better preserved. Moreover, you will not only save time with smart debtor management, but also money. It also gives your cash flow a boost.
If your customer still does not respond to the payment reminderthen Payt will follow up with an amicable collection process. Is there still no response? Through Payt, you can automatically forward your collection cases to a bailiff or lawyer.