Myth 1 - Debt collection services are something only big companies use.
Thousands of small businesses refer debts every day ranging from a few hundred dollars through to tens of thousands of dollars. These businesses recognise that their expertise is related to their product or service, not collecting money. They use third party debt collectors like D&B because they know their chances of being paid increase significantly and they only get charged when outstanding debts are collected.
Myth 2 - Debt collectors are something you use when overdue invoices are extremely delinquent.
The truth is the earlier you refer the debt the more likely it is to be collected. Research shows that debts referred for collection at 30+ days overdue are nearly three times more likely to be collected than those referred at 90+ days overdue.
Myth 3 - Using a debt collector means losing a customer forever.
The truth is this depends on the debt collector and when you refer the debt. A good debt collector understands that their job is to collect the money you are owed while helping you maintain your customer relationships. By referring debt early and using a collection agency as part of your normal accounts receivable process you can ensure the agency complements your in-house collection efforts, protecting your brand, while still escalating pressure on your debtors so you get paid sooner. Make sure your collection agency is reputable and takes your brand as seriously as you do.
Read the full 5 myths of debt collection >> (150KB)
Get the real picture
No matter how many debts in your portfolio that require collection, D&B can tailor a collections package to help your business get paid sooner. Learn more about D&B's debt collection service by calling 13 23 33 or email clientservices@dnb.com.au
