Hiring a collection agency has several benefits for businesses: 1) Agencies have tools that make the collection process more efficient and increase cash flow; 2) Agencies are experts in debt collection laws and mitigate legal risks; 3) Agencies can help businesses comply with financial reporting requirements and provide documentation if debts need to be written off or lawsuits pursued.

1. WHY HIRE A COLLECTION AGENCY?
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2. HERE'S WHY
Almost every businessperson has encountered
overdue accounts and slow payers can have a huge
negative impact on your business.
Here's why hiring a debt collection agency is a good
idea.
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3. EFFICIENCY Collection agencies can reduce legal costs and other fees a business can accrue when trying to
collect debt on their own.
Agencies also have more advanced tools for collecting, like skiptracing and credit history analysis,
that can simplify and speed up the process, while increasing cash flow.
Additionally, a good collection agency will settle debts quickly and in a cost-effective manner.
And, most agencies operate on a contingency fee basis, meaning if they don't collect, you don't
pay.
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4. LEGALPROTECTION
There are numerous laws, some differing by state, that govern the debt collection
industry and well-informed debtors won't hesitate to sue if they know a law has
been broken.
Debt collection agencies are well-versed in these laws and rules for each individual
state, as well as federal laws.
Hiring a collection agency will mitigate the legal risks involved in trying to collect
debt on your own.
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5. SOXCOMPLIANCE
After the infamous demise of Enron in 2001, the Sarbanes-Oxley Act was
established to "protect investors by improving the accuracy and reliability of
corporate disclosures made pursuant to the securities laws, and for other
purposes."
In short, debt collection agencies can assist your company’s ability to demonstrate
a self-compliant financial accounting framework and controls as part of your
Sarbanes-Oxley requirements. This not only demonstrates due diligence, but
might reduce the overall consultancy costs.
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6. ADVICE
Since collection agencies specialize in credit management, your company can gain valuable
advice and support.
Collectors can also provide helpful advice and support to debtors on how to get out of debt.
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7. REVENUE
One of the more obvious benefits of hiring a debt collection agency is getting
money paid that is owed to you, thus increasing your revenue.
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8. PREVENTION
Debt collection agencies can analyze the credit history of potential clients to spot
possible slow payers, saving your company more money in the long run.
It's better to be safe than sorry.
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9. DOCUMENTATION
Collection agencies keep detailed records and documents on interactions with
debtors.
Should you decide to sue, the collection agency will most likely have enough
evidence to prove that sufficient effort was put forth into collecting the debt, and
the debtor failed to cooperate.
Additionally, if you claim the bad debt as a write off, the agency will have the
appropriate documentation.
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10. LITIGATION Some collection agencies have an in-house law firm to assist on whether to file a
lawsuit or not.
The agency can complete a thorough asset investigation and provide you with a
complete history of the debtor’s payment trend and financial status.
Having this information will enable a fact-based decision, increasing your odds for
successful and profitable litigation.
Return on investment is the focus point for collections. Losing money on litigation is
not an option.
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11. AUDITS
Brown & Joseph is the only collection agency that offers premium audit services
through CPAudits, in addition to collection services.
CPAudits conducts virtual audits, which significantly reduces the time and cost of
completing an audit.
CPAudits, in tandem with Brown & Joseph, also offers an Estimated Audit Resolution
Program (EARP). The EARP allows the collections side to go after the estimated
premiums.
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12. SHIFTINGFOCUS
Letting a collection agency manage debt will allow you to focus on your core business
activities, instead of trying to manage debt collection efforts.
Employees will be able to focus solely on day-to-day operations and achieving goals,
instead of tracking down debtors.
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13. THANK YOU
For more information, contact Dennis Falletti,
Executive Vice President of Business Development
+1 800 444 8255
One Pierce Place Suite 1225W
Itasca, IL 60143
DFalletti@brownandjoseph.com
www.brownandjoseph.com
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