Is It More Effective to Handle Collections Internally?
Most companies have individuals who handle past due accounts, and this task is usually managed professionally, and positive results can be gained. Depending on the seriousness of the situation, the average number of past due accounts, and the ability of internal staff to manage this sensitive area, it often makes sense to assign collection of delinquent accounts to a qualified third party. Experienced recovery managers, familiar with standard objections and stall tactics from debtors, are usually more effective than an internal bookkeeper or accounting staff member who may be too busy or less motivated to get results. In addition, the involvement of a third party in the collection process often sends a clear signal to the debtor regarding the seriousness of the matter, and therefore can serve as a more effective catalyst for prompt payment.
