by: Joel Walsh

If you're like many small business owners, the mountain of debt you
accumulated during startup might have been enough to make you worry
about collection agencies every time you answered the phone. But
your feelings toward collection agencies are eventually going to
change, if they haven’t already.

Small Business Collection Agency Services: More Benefits than Costs

Small business collection agency services will certainly cost more
than just writing letters demanding your money back. But the amount
of money you’ll collect, not to mention the time you’ll save, will
more than pay it back. In fact, when you consider the hourly rate of
your employees, or you yourself, collection agencies’ fees really
can be quite a bargain.

Let’s say you have an assistant your business pays $10/hour,
effectively costing your business $15/hour once you count in
employment taxes, benefits, and the overhead of your office. You
would be lucky if that assistant spent just five hours total on each
debt, and managed to collect half of them.

But you would have sunk $150 into each successful collection. Plus,
there’s the opportunity cost: $150 worth of time you haven’t spent
in growing your business. So the net loss is $300, and probably more
if you’re a profitable business that gets a good return on your
people’s time.

But if you refer your delinquent debts to a collection agency for
$75 each, and they collect three-quarters of them, you’ve invested
only $100 per debt collected. Once you factor in all the money from
all the debts the agency collected for you that you couldn’t have
collected on your own, the return on investment is huge. That’s not
even counting the saved opportunity cost, or all the stress you’ll
save yourself and your associates.

In the end, your small business has to focus on doing what brings in
the money: your core business. Leave your taxes to your accountant,
your office repairs to your building manager, and your collections
to your small business collection agency.

About the author:
Joel Walsh writes for Collection Agency
Information:http://www.collection-agency-information.com? collection
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