|
Click Here for more
articles
|
|
|
|
Small
Business Collection Agencies Get You Paid
|
|
by: Joel
Walsh
|
If you're
like many small business
owners, the mountain of debt you accumulated during startup might have
been enough to make you worry about collection agencies every time you
answered the phone. But your feelings toward collection agencies are
eventually going to change, if they haven’t already.
Small Business Collection Agency Services: More Benefits than Costs
Small business collection agency services will certainly cost more than
just writing letters demanding your money back. But the amount of money
you’ll collect, not to mention the time you’ll
save, will more than pay it back. In fact, when you consider the hourly
rate of your employees, or you yourself, collection agencies’
fees really can be quite a bargain.
Let’s say you have an assistant your business pays $10/hour,
effectively costing your business $15/hour once you count in employment
taxes, benefits, and the overhead of your office. You would be lucky if
that assistant spent just five hours total on each debt, and managed to
collect half of them.
But you would have sunk $150 into each successful collection. Plus,
there’s the opportunity cost: $150 worth of time you
haven’t spent in growing your business. So the net loss is
$300, and probably more if you’re a profitable business that
gets a good return on your people’s time.
But if you refer your delinquent debts to a collection agency for $75
each, and they collect three-quarters of them, you’ve
invested only $100 per debt collected. Once you factor in all the money
from all the debts the agency collected for you that you
couldn’t have collected on your own, the return on investment
is huge. That’s not even counting the saved opportunity cost,
or all the stress you’ll save yourself and your associates.
In the end, your small business has to focus on doing what brings in
the money: your core business. Leave your taxes to your accountant,
your office repairs to your building manager, and your collections to
your small business collection agency.
About the author:
Joel Walsh writes for Collection Agency
Information:http://www.collection-agency-information.com? collection
agency [Web publication requirement: create live link for the URL/web
address with "collection agency" as visible link text/anchor text; if
offering for re-publication (article bank, aggregator, or
clearinghouse), no link text required.]
Circulated
by Article
Emporium
|
|
