Being a service provider, you would love it if your clients are paid on time. But then, there are so many times when your clients just would not wish to adhere to your wishes. Payments get late, sometimes inordinately. As a service provider, you may just not be able to afford the delay in payments. In such a scenario, you should be using the services of debt collectors in Singapore to help you collect the debts from other parties.
The word Debt collection agency or a debt collector makes a lot of people feel that they use covert and coercive methods to recover debts from people. In reality, these guys use rather sophisticated debt collection methods, which will not compromise on your relations with your clients. Let us face it Delinquent payments, unnecessary and unprofitable for your business, is an unavoidable aspect in most business transactions. Things possibly could get worse what with the financial turmoil in the economy.
The Debt collectors are often referred to as first party collection agencies because of their contact with the merchants. Outsource the debt collection function to them, and allow them to deal with the merchants in the way they know. This means you can be assured they would not use any means that can detrimental to the interests of your clients.
In most cases, you would find that the debt collection agencies call or send emails to your clients. Sometimes, they would visit the clients, but this would be only after the clients agree to them visiting. The objective of the activities of debt collectors should be understood well. What do you want them to do? Do you want them to collect debts for your business? Do you want to get a time commitment from your client on the payment?
In essence, what you want your debt collector to do will outline most of what they do. This is something you as a business should decide before hiring debt collectors. Remember, your clients may not have paid you in time on two counts:
1) They did not like your services or products.
2) They have run short of money because of which they are not able to honor the commitments.
Point 1- means you may have to improve your services or products so clients like them.
Point 2- means you should be empathetic to your customer's situation. If there is something that he cannot pay now, you should understand that the payment may well be on its way some time in the future. Approaching delinquent payments with this kind of mindset is beneficial for your business, as it would help you build a good rapport with your clients. On ground, you could have the debt collector do this for you. But in your mind, you need to make the change first.
Below are some main points to consider before choosing debt collectors in Singapore:
* How long has the debt collector been running?
*Whether the agency have encounter with client accounts similar to yours?
*Has the collection agency worked with businesses of your size?
*Is the agency able to handle the quantity of debts involved in your case?
* What are the company's strategies for collecting debt?
*Are the collection agency employees well-versed in debts collection laws? Can it give references of customers, which you can verify?
*What are the collection company's charges?
Benefits of Hiring a Singapore Company to Manage Overseas Debt Collection
When you have a business to run, you don’t want to waste time chasing your outstanding receivables, when this can be managed by overseas debt collection experts for you. These debt collectors will constantly monitor the dues from customers, follow up on receiving them and maintain necessary records in compliance with legal requirements for you, while at the same time building and maintaining a relationship with your clients. These companies will have multi-lingual speakers, who also possess the required legal knowledge required to be able to easily communicate with individuals in whichever country your client may be from. You will even be saved the hassle and time of doing a background credit check on new or potential clients or analyzing their ability to make payments, as these services will also be performed.
Benefits to client and debt manager
While the debt manager will receive updates via the software of payments received or new debtors, view any client’s account or payment history, draw a debt collector’s attention to certain matters and view performance reports, your customer will be able to view his own account online, communicate with you, make an online payment, receive live updates and other communication translated into any of 26 available languages. This streamlines all processes and communications simplifying the high volume debt collection process.
A complete overview
While some companies may apply a universal policy to the process of debt collection, a good overseas debt collection service provider will analyze your particular companies needs and its current position in terms of outstanding receivables. It will then formulate a suitable strategy, keeping in mind the type of client, which country the client is in, your existing relationship with him/her, the impact of the outstanding on your company’s cash flow etc. and accordingly begin to implement a suitable collection strategy.
Tracking your debt collection status
A competent overseas debt collection company will make it easy usually via suitable software or access to online data for you to always be in the know of what the position is on outstanding amounts owed to you. This data is usually made available via an online register.
In conclusion, at the end of the day debt collectors are just doing their job, if you are patient and polite to them chances are they will reciprocate and work with you within reason to help you get out of debt. Collection agencies help your business in reducing bad debts and improving client connections. Be prudent in selecting a Collection Agency for your business. The right collection agency is a valuable business partner.