Consistent and orderly payments are essential for a healthy cash flow. But sooner or later, companies find themselves confronted with defaulting customers , bad payers. Although they always try to collect these invoices on their own first, they inevitably end up seeking the expertise of a collection agency . But what exactly are the advantages of these agencies?
Protect yourself from bankruptcy
Bad payers are on the increase and payment behavior is worsening both among individuals and businesses. As a result, many companies have to deal with late payments and the associated cash flow problems.
The specifics of a recoverable debt
3 clauses must be met for a debt to be qualified as recoverable. First of all, the claim must be certain, that is, it must come from an existing debt. Then, it must be liquid, that is to say quantifiable or quantifiable. Finally, the debt must be payable, that is to say that its payment period has been exceeded. In addition, the debtor must be defined. Furthermore, before initiating legal proceedings for international debt collection, the creditors required to start with an amicable procedure. This consists of sending reminders to the debtor by letters (simple or registered) or by phone calls. When it comes to international debt collection, several factors such as the economic context, legislation and culture must be taken into account.
The amicable procedure
The amicable procedure is the first step recommended by law to collect a debt. It is imposed by law. The creditor is thus obliged to send reminders to the debtor. This can be done by simple or registered mail with acknowledgment of receipt or by telephone. For the presentation of tangible proof, it is advisable to establish written and non-verbal contracts. However, if the debtor does not react to the reminders made by the creditor , the latter can hire a collection professional to manage the collection. When a business is regularly confronted with bad payers, working with a fixed partner specializing in best debt collection agency can be essential. Indeed, these agencies will have a much clearer vision of the financial situation of the company and the solvency of the client. With their knowledge, they can respond in the most appropriate way to an unpaid invoice.
A unique method
By opting for a long-term contract, the company can set up a real collaboration with the collection agency. This will make interaction, communication and data processing more unified and faster. The company will be able to apply a built, well thought-out recovery method adapted to its needs.
Preferential rates
The fixed contract also allows the company to benefit from attractive discounts on the fees of the collection agency. These are calculated according to various factors such as the number of files, the importance of these files and the duration of the collaboration.
Better knowledge of its customers
The company that uses such an agency can better understand its client and better determine its solvency and profitability. This better knowledge of its customers allows the company to be able to put an end to its unproductive relationships on the basis of irrefutable arguments.
Files accessible online
Most collection agencies provide their clients with online access to their file. They can therefore consult the status of their debt portfolio 24 hours a day, 7 days a week .
Expertise in procedures
Collection agencies have the knowledge and experience to deal with people who are unwilling or unable to pay. In this way, they master all the procedures, amicable and judicial.
Regularity of payment
The company that works with a collection office for its invoices will receive its cash with more regularity. It will therefore be able to pay its own invoices on time.
The Specifics of a Recoverable Debt
3 clauses must be met for a debt to be qualified as recoverable. First, the claim must be certain, that is, it must come from an existing debt. Then, it must be liquid, that is to say quantifiable or quantifiable. Finally, the debt must be payable that is to say that its payment period has been exceeded. In addition, the debtor must be defined. Furthermore, before initiating legal proceedings for debt collection, the creditors required to start with an amicable procedure. This consists of sending reminders to the debtor by letters (simple or registered) or by phone calls. When it comes to international debt collection, several factors such as the economic context, legislation and culture must be taken into account.
The Amicable Procedure
The amicable procedure is the first step recommended by law to collect a debt. It is imposed by law. The creditor is thus obliged to send reminders to the debtor. This can be done by simple or registered mail with acknowledgment of receipt or by telephone. For the presentation of tangible proof, it is advisable to establish written and non-verbal contracts. However, if the debtor does not react to the reminders made by the creditor, the latter can hire a collection professional to manage the collection.
