Every entrepreneur knows that a good cash flow is important to keep your company going, no matter which kind of company you have. That’s why it’s important to act quickly when you notice one of your debtors isn’t paying your invoice in time. For that reason it’s a good idea to always have a collection agency on speed dial. There are multiple reasons why it’s useful to have a good relationship with your contact at a debt collection agency. We’ll gladly tell you which reasons these are!
1. A debt collection agency can act fast if needed
Everyone knows that when it comes to collecting debts, it’s important to act fast. Your business won’t fall if a 50 dollar invoice gets ignored, but when it’s a 5K one… Whenever a debtor doesn’t pay their bill, you don’t know the reasoning behind it. Maybe their cash flow is bad, but they might also be at the brink of bankruptcy. And in that case, you don’t want to be standing in the back of the line waiting for payment when they go bankrupt!
That’s why it’s important to have a debt collection agency (Dutch: incassobureau) on speed dial that can work fast. If needed, they can start the process of filing for bankruptcy to make sure you get paid.
2. A debt collection agency can access databases you can’t
When you don’t get paid and you realize your emails bounce and the phone isn’t answered anymore, you might also realize you have no idea who owns a company. Sure, you might have had contact with the marketing manager, for instance, but they’re not the one that has to pay your invoice!
Some companies’ ownership structure is really hard to unravel. It’s almost like it’s clouded in mystery! Luckily for you, your preferred agency has access to all sorts of databases so they can track down the owner of a company.
3. A debt collection agency can also dissolve rental agreements
Most people think of debt collection agencies like in the movies: people that hunt you down when you have a debt. That’s of course what Hollywood makes of them; most of the time they figuratively ‘hunt’ people down who have bought goods or services from a company and haven’t paid for them.
But that’s not all they can do! For instance if you’re a landlord and your renters aren’t paying their rent on time, your agency can also help you with the termination of the rental agreement (Dutch: ontbinding huurovereenkomst huurcontract) so you can get renters to move in that do pay their rent.
Have you never worked together with a debt collection agency? Then we recommend you to ask around – fellow entrepreneurs might have recommendations! We also recommend you to read the (Google) reviews of the agencies in your city/area. Because most of this is done online, it’s not needed to work with the agency closest to you, you can also choose an agency with better reviews that’s located further away.
We hope you find a good debt collection agency!