There is almost $80 billion in debt collection annually, making accounts management a very profitable business. There is much needed from any single accounts receivable collection agency. With one agency able to complete millions in collections for multiple clients.
The Need for an Accounts Receivable Collection Agency
As of September 2018 consumer debt in the United States rose to almost $4 trillion. As a business in need to having your invoices and other bills from consumers and clients paid in a timely manner, you have the possibility of losing your financial stability. Therefore, almost every credit card company and retail company in the nation to hire collection agencies to assist in reclaiming those funds. Amazingly enough, almost half of all debt comes from healthcare expenses.
An accounts receivable management company can help to close all of these consumer accounts without members of your own office spending such incredible time and effort on them. With so much pressure that must be placed on those who work to acquire payments, it is important to hire a debt recovery agency or collection agency in order to retrieve these payments. Combined debt collection and recovery services are valuable to almost all businesses, though they are even more important in specific industries. There is, of course, healthcare, but with so many people taking out credit cards and retail store cards the potential for added debt just becomes greater and greater.
The Value of Using Accounts Receivable Collections
Consumer bills are usually required to be collected within a matter of 90 days, making the tasks of accounts receivable and collections to be quite stressful. Accounts receivable may already be handling current accounts, orders, and other payments that are coming in regularly or even managing accounts payable at the same time. Some of the many benefits of hiring an agency including the following:
- About a third of all debt collected by hired agencies is only three months old or less.
- Among all Americans, about 20% total has trouble paying medical bills, even with insurance.
- Among American collections the average medical bill that becomes debt is about $580.
Many quality services are available upon hiring an accounts receivable collection agency to acquire payment from customers. Without the need to put excessive pressure on your accounting department, these agencies are able to provide a number of valuable services to collect the funds from those who owe you:
- Business debt collection services
- Collections for government
- Court collections
- Third-party collections
- Consumer debt collection services
Whether it may be consumer or tax debt, dependable collections agencies are helpful for both the government and businesses alike. It is hard to keep up with the millions of Americans who forget to pay a bill on their own, even those small ones that have fallen by the wayside for many years. Knowing that there are so many thousands or even millions of dollars of taxes and retails bills that go unpaid every year leads to this need for collection. Even if the collection is only completed in the long run.