Small Business Debt Collection
IRS offers a wide variety of small business debt collection services to improve recoveries and the bottom line of your small business. We are a fully licensed and bonded BC collection agency. Our agency offers consumer, legal, commercial and B2B debt collection services. Reasonable rates and fast debt recovery results are why so many small businesses rely on our collection agency.
Running a small business today can be stressful enough without the added worry of delinquent debt collection. A properly maintained accounts receivable ensures consistent cash flow for your small business. However, your customerís financial situation can change and their problem becomes your problem when they stall or ignore paying their debt. In many cases, if a tardy customer is allowed to procrastinate you may be looking at never getting paid at all. In debt collection timing is everything and the smart small business owner knows when to place an account with a collection agency.
Collection Warning Signs
There are several warning signs your small business needs a collection agency:
- Your customer has you on ignore. Something is definitely wrong when a customer ignores your collection calls and past due notices. This is usually the first warning sign you need a collection agency.
- Broken promises are a good indicator that your customer is losing control of their ability to pay your account. Empty promises to pay are also an indicator your customer is juggling their payables by priority. Often you are not being paid because the customer has to pay another creditor who has retained a collection agency.
- Change of ownership is a really bad sign if your commercial customer is located in BC. There is no bulk sales act in BC. This means debtor companies can sell off their unencumbered assets and leave unsecured creditors with a bad debt. If you are aware of the change beforehand then you may be okay. However, if the change is a surprise then you definitely need a collection agency.
- Returned mail-emails is a call to action. In some cases a small business will silently go out of business. Returned emails are a bad sign and the account should be immediately investigated or referred to a collection agency.
- Industry rumors can be another warning sign. Most industries have an information chain, or grapevine on developments and changes going on in an industry. If your customer just lost a major client then it is sure to hit the grapevine. Perhaps your commercial customer has lost a valuable employee who was actually the brains behind their operation. These and other clues are often a good indicator that you should be placing an account with a collection agency.
Why you should use a Collection Agency
The main reason you should use a collection agency is simple. It is better to get a percentage of something than a 100% of nothing. IRS handles debt collections on contingency, or a no collection-no fee commission basis. Give us a call or schedule your free consultation with our collection agency.