Hiring a Debt Collection Agency: Bad for Your Reputation?
After contacting your debtor several times without any success, you feel that it’s time to hire a Debt Collection Agency to get your overdue invoice paid. But you have one important question: ‘Will hiring a Debt Collection Agency have a bad influence on my client relationship and reputation?’ Keep on reading to get an answer to this question!
Why a Debt Collection Agency could hurt your reputation
In general, debt collection is associated with a negative feeling and that is completely understandable. It’s not a secret that no one likes receiving calls, emails, or messages from a collection agency about a debt they owe. However, this is not a reason why a collection agency could hurt your reputation. The reason why it could hurt your reputation is directly connected to the approach a Debt Collection Agency takes to pursue your debtor.
Some collection agencies use an aggressive approach to collect debts, such as contacting a debtor with an attacking tone of voice or threatening the debtor to scare them into paying the unpaid invoice. Of course, this will negatively influence your reputation, and it’s best not to do business with such collection agencies.
Why a Debt Collection Agency will not hurt your reputation
When hiring a Debt Collection Agency make sure to do your homework. Look into the collection agency online and try to get a good first understanding of their process and approach towards debt collecting.
The first step a good Debt Collection Agency takes is discussing your preferred approach towards your debtor. Don’t know what approach is best to contact your debtor without hurting your reputation or customer relationship? Don’t worry – an experienced Debt Collection Agency will advise you based on their extensive experience and knowledge.
Once agreed on the approach, the process of debt collection will start. You will be kept up-to-date on any developments in your debt collection case. This way, you always know what’s going on and are able to give your input on what steps to take next. When closing the debt collection case, you and your debtor should both be satisfied with the outcome.
Fun fact: one of the top 5 customer acquisition channels of CMC is debtors who went through the CMC collection process themselves and decide to become a client!
Will hiring a Debt Collection Agency have a bad influence on your reputation? The answer is simple – when you choose the right collection agency, it will not hurt your reputation.
Here’s an interesting read on the different tones of voice which separates the good collection agencies from the bad; ‘Debt Collection Approach: Aggressive or Assertive?’.
If you have any questions regarding debt collection, please don’t hesitate to contact us. We are more than happy to help!