Better Business Habits

8 Surprising Ways a Collection Agency Will Increase Your Profitability

Business Strategy  |  2 min read

Why the heck would we pay a collection agency for something we can do ourselves?

That’s a question entrepreneurs often ask, and it’s symptomatic of not having worked with the right debt collection partner. The truth is, few businesses of any size are equipped to collect overdue debt effectively and consistently.

The reality is that a good collection agency complements your business activities and makes you more profitable.

Here are 8 ways a collection agency can increase business profitability:

1. Improved Cash Flow.
Recovering a debt immediately fuels cash flow and boosts your bottom line. The best collection agencies have excellent recovery rates, especially if you keep good records and submit accounts promptly.

2. Better Efficiency.
At MetCredit we’ve developed and continuously improve our unique MyMetcredit platform to make it super-easy to load your overdue accounts anytime — day, night or on weekends. The right information goes directly where it belongs in our system so we get started faster than ever. Even our clients who were initially resistant to a web-based system have become raving fans of it.

3. Less Stress.
When you turn an account over to collections, you are literally removing it from your concerns. It becomes entirely the collection agency’s responsibility. With a load off your mind, you can focus brain power on other things like new business, internal improvements and customer service. All of those are better for business (and your mental health) than chasing resistant debtors.

4. Less wasted time.
In addition to all that stress, unproductive debt collection effort can be a huge time sink. Why pay a manager or bookkeeper to inefficiently do the work of a professional collector? That’s bad for profits and employee retention.

With a collection agency on your side, you can focus time and brain power on higher priorities like new business, internal improvements and customer service. 

5. Fewer losses.
For many businesses, bad debt is viewed as a cost of doing business: a substantial line item on the liabilities side of every year’s financials. It doesn’t have to be that way. Using a good collection agency can put thousands back in.

6. Lower costs.
If you traditionally pursue debt via your law firm, you incur fees immediately. Legal fees, search and court costs, and then the money spent collecting on a judgment if successful. Good collection agencies absorb all the upfront costs and get paid only if successful. That means you never throw good money after bad.

7. Brand positioning.
Using a professional collection agency looks good on your business. It shows you do things like the big boys rather than negotiate in-house. My business is built on cultivating respect.

8. More successful customers. 
Our approach at MetCredit is completely different from others, because we focus on helping debtors find ways to pay while improving their own inner workings. It benefits your business and those down the line, which is good for everyone.

Clients of MetCredit know all this. Give me a chance, and I’ll make you a believer too. Send a note by email or call me directly at 1-888-797-7727 ext 2377.

Not quite ready? Be sure to download my 10 Free Pro Tips (link below) and start collecting more productively right now!

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Brian Summerflet Author: Brian Summerfelt

President and CEO of MetCredit, Canada's top-performing consumer and commercial collection agency

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