If you have heard anything about commercial collection agencies, chances are it was not necessarily positive. Maybe you heard collection agencies are expensive or their employees ruthless — or perhaps that they are simply unnecessary. As a result of these misgivings, collection agencies often suffer poor reputations. However, these agencies and the professionals their directors employ play integral roles in the U.S. economy and may deserve to be viewed differently.1
Not only do collection agency experts overwhelmingly support small business owners but the assistance they offer also provides a vital service for these companies.2 Furthermore, credit agency and collection professionals had a combined net revenue of $44.9 billion in the marketplace and added more than 230,000 jobs both directly and indirectly in the United States in 2013.3
Collection agencies influence our economy
Collection agency experts across the country support business owners and the economy in big and small ways, including
- helping maintain regular cash flow. It is no secret: Small businesses cannot exist without available cash flow. If there is ever a lapse in payment for goods or services, collection agency professionals can help owners recover this debt, which ensures small businesses can continue to function.
- streamlining financial processes. Working with commercial credit agency experts helps business owners create more efficient financial systems, which leads to lowered operation costs. Collection agency advisors can offer valuable resources and knowledge to help credit managers create up-to-date and effective financial departments. Taking these vital steps to ensure the efficient operation of your financial department pays off in the long-term viability of your business.
- reducing consumer costs. When companies have high numbers of outstanding accounts, their leaders often need to increase product or service costs to compensate. They can reduce the number of overdue accounts by working with commercial collection agency experts, meaning business owners can avoid raising consumer costs as well.
- enabling creditors to continue to extend credit. If business owners were never able to collect on past-due accounts, they would not have the available funds to extend credit to the next business or customer. If a business owner is unable to continue the cycle of lending and payment, sales and operations may come to a halt.
- supporting the economy. Commercial credit collection agencies not only add thousands of jobs to the economy but, additionally, by increasing businesses’ revenues, credit agency employees help fuel government revenue. This leads to less need for tax increases because the local, state, and federal budgets are being funded.
How can a collection agency help your small business?
Collection agency professionals have proven to be valuable partners for small business owners as resources for financial and operational information. A commercial collection agency expert can help you operate your business more efficiently and collect on overdue accounts, which protects your cash flow. Collection agency employees also help safeguard your ability to continue to offer credit in the future. Next time you hear collection agencies getting a bad rap, think twice!
1 The Association of Credit and Collection Professionals. 2016. “New Research Shows Most Debt Collection Companies are Small Businesses Helping Other Small Businesses Thrive.” August 18. Source
2 The Association of Credit and Collection Professionals. 2016. “Small Businesses in the Collection Industry: An Overview of Organization Size and Employment.” August. Source
3 The Association of Credit and Collection Professionals. 2014. “The Impact of Third-Party Debt Collection on the National and State Economies.” Source