Outbound Calls – Debt Collection Services
There are unexpected economic situations that prevent debtors from paying what they owe on the due date. Job loss, health problems and even lack of foresight are some of the few. As a result, businesses from industries such as finance inevitably face the challenge to recover debt and lower accounts receivable as soon as possible.
A business may address the challenge in two ways: reactive or proactive. The reactive approach is debt collection whereas the proactive approach is debt collection reminder calls. Some businesses adopt both.
What Is Debt Collection?
A delinquent account could be delayed payments for credit loans, auto loans, etcetera. Usually, it takes six months of non-payment before a business finally decides to assign or sell delinquent accounts to a debt collector. Other businesses seek out a debt collector after just a month or two of non-payment.
The debt collector is the company or agency that specializes in debt collection, the process of recovering debts. When a company assigns a debt collection, the debt collector receives a fee or percentage of the total money it collects as compensation. There are cases when a debt collector becomes a debt buyer. In this case, the debt collector purchases the debt at a much lower price then pursues the debtors independently to retrieve the full money owed.
A debt collector may call the phone number, send a notice, and even show up at the house of a debtor. They may also notify the credit bureau of a debtor’s non-payment to report a low credit score. Nonetheless, there are laws that regulate the practices for debt collection. These laws vary per country. For example, a debt collector may only call between 8:00 am to 9:00 pm during weekends and weekdays in America, whereas a debt collector may only call between 7:30 a.m. to 9:00 pm during weekdays and 9:00 a.m. to 9:00 p.m. during weekends in Australia.
Needless to say, debt collection is a challenging task. Debt collectors need to be wary of the laws that regulate debt collection while executing the best strategies to recover debts. Debt collection could also deplete a company’s limited resources. For this reason, many companies decide to assign or sell delinquent accounts to a debt collector. It is even much more cost-effective if they outsource debt collection to an offshore company.
Outsourcing Debt Collection Reminder Calls
Nowadays, there is an approach that gives businesses the opportunity to avoid increasing accounts receivable proactively. It is through the debt collection reminder calls. From the name itself, it refers to the process of calling customers a few weeks, days, and even hours prior to the deadline of their payment. Sometimes, a reminder every now and then is all that it takes to lower accounts receivable and prevent delinquent accounts. It does not only help you but also your customers.
Debt collection reminder calls is a good way to maintain a good relationship with customers and improve cash flow. The task requires an expert who is customer-centric, sensitive, and knowledgeable of the best strategies and techniques in reminding customers of their due payments in the most effective way possible.
Benefits of Outsourcing Debt Collection Services
It takes skill to deal with debts either through the reactive or proactive approach. Not only does outsourcing debt collection and debt collection reminder calls help you reduce operational costs, but it also helps you reach out to debtors. See the list of benefits of outsourcing debt collection services below:
Outsourcing firms specialize in doing non-core tasks. They know the best practices and strategies when it comes to debt collection and collection reminder calls. Agents undergo extensive training regarding the laws of debt collection and use the best strategies to help lower your account receivable. Expect results from the right outsourcing partner.
Outsourcing to a reliable firm frees you from this worry. Outbound call center agents of an outsourcing firm are knowledgeable in making effective and efficient welcome calls.
Many businesses find it profitable to partner with a good outsourcing firm because it allows them to tap into the talent they need for non-core tasks. As outsourcing firms never stop sourcing potential employees for various non-core functions such
The cost advantages that outsourcing brings is a top reason why businesses venture to it. First and foremost, outsourcing immediately reduces operational expenses. Since the operations will take place in the location of your outsourcing partner, you can tick off the purchase and maintenance of equipment from your list of financial worries.
Outsourcing to offshore countries also gives you access to much lower labor rates. The total payment of outsourcing to an offshore outsourcing company is competitively lower compared to outsourcing to onshore and nearshore companies. This is why the Philippines became the number one offshore country for call center services.
One of the concerns in outsourcing is the information security protocols that an outsourcing provider has in place. Since it is inevitable for a business to share sensitive company information to its outsourcing partner, it is highly critical that a vendor’s systems, processes, and people are reliable enough to secure data. An ISO certification is one proof to help you determine this.
Outsourcing firms need to keep up with the latest technology when it comes to computers, telephony systems, and internet speed in order to provide a great service. Faulty computers and downtime can easily be resolved when you partner with a good outsourcing company. As a result, you can expect that your agents have the necessary support they need to work as efficiently and productively as possible.
Industries That Outsource Debt Collection Services
Banking and Finance
When to Outsource Debt Collection Services
Outsource debt collection services to a reliable offshore firm if you want to:
- Improve customer service
- Secure telephony systems
- Concentrate on core business
- Reduce delinquent accounts
- Lower account receivables
- Save on additional costs
- Start operations immediately
- Reduce operational expenses
- Obtain qualified talent immediately
- Save time on training and managing staff
- Gain expertise
- Affordable labor