Appointing a best debt collection agency in Singapore can be a helpful method of recovering payment from bad debtors. In some cases the only prompting a debtor needs to pay up is a letter advising them a debt recovery expert has been appointed.
Here are some of the advantages of using a debt collection agency to secure payment from bad debtors:
- By appointing a third party to manage these debts we can save valuable time and resources allowing us to focus on what is important — growing our business.
- Debt collection is not just a function of a debt recovery agents business — it is their business. Tried and tested methods of debt collection increase our chances of recovering our bad debts in full.
- Appointing a debt collection specialist is sometimes all that is required to prompt our bad debtors to pay up!
- Dramatically decrease the amount of bad debt we need to write off each year by partnering with a debt collection agency who can work with us in securing our debts much quicker!
- Send out a clear message to other customers that late payment and bad debts will not be tolerated. Ultimately ensuring we are top of the list of people to pay a month in month out.
Signs of a bad debtor
There are some tell-tale signs of a bad debtor or a business which could quickly become a bad debtor unless they receive some urgent attention. Here are some of the signs to watch out for:
- Payments are slow to be sent every month. This could indicate cash flow issues. Ensure that you keep an eye on these customers so we are quick to react should they get into financial difficulty.
- Our invoices are returned as undelivered mail.
- Customer suddenly becomes unavailable.
- Excuses are continually made for late payment and potential rudeness.
- Orders are dramatically increasing or decreasing.
- Queries over invoices increase.
- An increase in requests for trade references — letters to other organizations vouching for them being a good/prompt payer of invoices.
- Change in ownership of the business.
In order to keep our business ventures afloat, we must collect payment for our products or services. Unfortunately, not all customers are reliable. We likely have more pressing demands on our time than making frequent telephone calls and writing letters in an effort to collect delinquent debts. Though, the older a debt grows, the harder it is to gather. If our demands for payment have been unsuccessful, or we simply do not have the time to devote to collecting overdue accounts, a third-party collection agency can help our business recover unpaid debts and increase its bottom line.
Successful debt recovery
Hiring a collection agency increases our odds of collecting delinquent debts. Our primary focus is running our business, but a collection agency’s primary focus is recovering the debt. Professional collectors are incessant, aggressive and often have the ability to report unpaid debts to the credit bureaus. A collection account unconstructively affects a debtor’s credit scores for up to seven years, and often debtors will make payment arrangements with collectors merely to avoid credit damage. To read more about Singapore debt collection click here.