Why a Credit Management Collection Agency Is Your Best Bet
Wilson Cole
One of the many reasons why an engineering career is rewarding is that it allows you to assist clients in creating the home or storefront of their dreams.
It may appear extraordinary to see a 2D picture come to life from a mess of concrete, metal, and roofing, but none of these components came out of thin air. Money, they say, makes the world go-'round, and this is undoubtedly true in the construction industry.
Cash is required to purchase or manufacture each block, pay workers and specialists, and maintain the firm's financial stability. So, what happens if a client is unable to meet the project's budgetary requirements? And any attempt to collect a debt becomes difficult? Outstanding bad debt is always an issue, especially for engineering firms that do not have the resources, customer service, and skills of a credit management collection agency.
How Bad Debt Negatively Affects Engineering Firms
Despite participating in large-scale projects, the sad reality is that engineers and firms sometimes only make enough money to break even. And it’s not just because of delinquent accounts.
Do not get me wrong: bad debt happens in every sector and profession. However, every expansion or advancement in an engineering firm's portfolio requires a significant amount of cash.
But still, non-paying clients make it so tricky for engineering firms to thrive financially. Why? Because the margin between expenses, taxes, and net profit are so narrow, even one non-paying account makes it impossible for the company to recoup.
Naturally, you will want your customers to pay as quickly as possible. But when "soon" and "possible" turn into "never" and "impossible," perhaps it is time to hire a reputable credit management collection agency specializing in engineering firms.
What is a credit management collection agency?
A debt collection company does exactly what its name implies: they attempt to collect a debt on your behalf. Through a debt collection agency’s efforts, you may receive legal advice and see credit repair strategies at work that will boost your credit score in the long run.
Working with a skilled and experienced credit management collection agency specializing in helping out engineering firms will help you get your engineering and professional service debts paid off faster. But when can you wholeheartedly declare it is better to enlist the services of a debt collector?
If your non-paying client ticks off the three items below, it is time to tap a credit management collection agency:
- When a client states they are not going to pay you
- When the collections account is 90 days overdue
- When they did not pay on the agreed-upon date
There is no reason why your client would tell you this if you fulfilled your end of the contract. Could they only be joking? Sure, but why would they if the service is already done and ready for their purpose? In scenarios like this, there is a good likelihood they mean it.
When an outstanding invoice is 90 days past due, collection agencies usually use a 90-day countdown. If the debt has been unpaid for so long, the client is likely to have stopped replying to you.
If they did not pay back when they answered the phone, how much more now that they are missing?
So the client did not wholly go MIA on you; they merely asked for an extension. You relented because better late than never, right? But what happens when the date comes, and not a single dollar has been paid? Do you still give an extension?
It is best that you don’t—your leniency gives the impression that you’re not really in a hurry to get paid. Given this attitude, the client can even negotiate to push back due dates with no problem.
A promised date is a commitment you should keep, especially if your business depends on it—that is what a credit management collection agency will ensure for you.
Why a Credit Management Collection Agency Is Your Best Bet
If you have tried everything and nothing has worked, it is time to hire a credit management collection agency. Why? Because it is what they have been trained to do.
A debt collection company has the employees, time, energy, resources, knowledge, and experience to complete a debt collection process. However, making them collect the debt for you means you put experts in charge of multiple notifications, calling, credit reporting, and possible litigation.
Allowing a collection agency to assist you frees up your time and focus so you can concentrate on your area of expertise—your engineering firm—maximize efficiency, and boost profitability.
To Wrap It Up
Breathe easy when you tap a credit management collection agency with an established track record—one with the resources and skills to obtain what your engineering firm is entitled to.
Address
1201 West Peachtree Street, Suite 2300, Atlanta, GA 30309
800-452-5287