Have you been wondering if you need to outsource collections for your business? Maybe the task keeps falling by the wayside or perhaps you think you’d benefit from the expertise. And you’re probably wondering if outsourcing could reduce costs.
If you’ve been thinking about outsourcing but aren’t sure the timing is right, take a look around your firm. If you notice any of these five signs, then you’ll know the time has come.
1. You’re too Busy
Everyone gets busy from time to time. Most businesses have cycles of lull times and crunch times. During those busy periods, important tasks might need to be set on the sidelines until you have a bit more freedom.
Does it seem like lately you’re not getting the “down time” you need to complete sidelined tasks like collections? If you keep pushing it further down your to-do list, yet never get to it, it’s probably time to outsource.
2. Unpaid Bills Are Piling Up
Collections work doesn’t always mean going after overdue accounts. Sometimes, it’s pre-emptive, such as sending out a friendly reminder to the customer before the bill becomes overdue. In other cases, of course, it means chasing accounts that haven't been paid—sometimes for months.
If you’ve noticed a sudden increase in late payments or accounts going unpaid for longer, it could be a sign your collections process isn’t as efficient as you think. And it could also be a sign it’s time to send collections work to the experts: You need a helping hand getting those reminder notices out on time or chasing down customers who are late with payments.
Outsourcing collections will increase the efficiency of your process. You’ll get paid sooner too.
3. A Sudden Surge in Accounts
Your business has been growing at breakneck speed. Great news, right? In some ways, yes! And in other ways, not so much. Your accounts collection process could be feeling the sting of such accelerated growth in the business.
If you’ve had a sudden surge in accounts, you might have trouble managing them all effectively. Maybe the software or system you’ve been using isn’t designed to handle so many accounts or perhaps it doesn’t have the automation features you need. Maybe your team just doesn’t have time to manage collections. If this sounds like your situation, then it’s time to look at outsourcing as a viable solution.
4. Your Costs Are Too High
Collections work can be costly, and doing it in-house could be running up a higher bill than you think. Crunch the numbers and figure out just how much you’re spending on collections.
Compare your costs to an outsourced solution. Could you be saving money while also becoming more efficient? For many businesses, the answer to this question is a resounding “yes!” If it happens to be the case in your company, it’s definitely time to move to outsourcing.
5. You Need Expert Help
If some accounts have gone unpaid for six months or more, you might be tempted to write them off as bad debt and call it a day. You might be aware of strategies you could try in order to recover these debts, but you and your team might not have the expertise to use them.
In this case, outsourcing collections work is definitely the solution you need. You can get experienced and expert collections agents on the job in no time—and you’ll be able to recover at least some of that “bad debt” you were just going to write off.
If you see any of these five signs in your business, it's time to consider outsourcing collections!