In today’s world, when you are hiring an agency for getting your dues back from the market, you need to trust the professionals. And in today’s high-speed digital world, trust is indeed a very delicate thing. Now there are several levels of understanding of trust and establishing it. And needless to say, that like various other industries, the commercial debt collection industry also has a few fraudulent agencies that do not abide by the ethics.
You might be a little shocked to know that there are companies who even hold on to the fund they recover for up to sixty days! From where I sit and understand the business, this is not right! Why? Well, I will quickly jot down the reasons.
It’s Your Money!
Firstly, it is your money – the dues are rightly yours. Your agency should be charging you fees on a contingency basis for commercial debt recovery services. They do not have any right to hold the cash that technically belongs to you. So, do read reviews of the company before you hire them as otherwise, you might just get stuck like that! A good agency should have a standard policy like they would remit payment within two weeks from receiving it.
There is Actually No Excuse
With technology being a blessing, there is no valid reason as to why a collection agency needs to hold onto your fund. They can just transfer it. If there is a slight delay, they can still keep you posted about it. Once the electronic payments are confirmed, there is no reason under the sun to keep you waiting from getting the amount.
You have Earned it
The debtors are not giving it back to you just like that. They have availed products or services from you for the same. And you have assigned the job of collection to the agency, which they are not doing properly and thus, this is yet another reason.
You might need to Reinvest
Liquidity is very important in the case of any business. Cash flow is literally the lifeblood. So, why would you want it stuck when it is recovered already? Be very careful when you choose the agency. You might just want to reinvest it or have some business requirements. Every business could benefit from an influx of capital and thus, you should get it at the earliest!
You are Just Tired!
Lastly, this could be another reason and that is you can just be tired. Firstly, your clients were not paying and now, the agency is behaving this way. This can get totally frustrating!
So, these are the basic reasons why I feel that the agency should not hold the money back if they have already recovered it!
A reliable and reputed commercial collection agency would take two to six weeks to give it to you once they have got the cash. This is the industry standard.
I hope that this was informative and helpful. To know more about collection agency services, read my articles in this series.