With almost $80 billion in debt collection annually, there is much needed from any single accounts receivable management collection agency with one agency able to complete millions in collections for multiple clients.
The Need for an Accounts Receivable Management Collection Agency
Earlier this year consumer debt in the United States rose to almost $4 trillion. Without the ability to constantly track those accounts, there is the need for 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.
Value of Using an Agency for Collection
Considering the need to collect customer bills within a maximum of 90 days, there is much to gain from hiring a collection agency for your business needs. 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.
Account receivable collections can close all of these accounts without members of your own office spending such incredible time and effort on them. Considering the amount of pressure that must be placed on some people to get payments it is important to hire a debt recovery agency or collection agency to retrieve these payments. Combined debt collection and recovery services are valuable to almost all businesses, though they are even more critical 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.
With additional government and tax debt, there is a need for dependable government collection agencies. So much tax debt exists that there is quality in what these agencies will be able to provide the IRS with the collection of back taxes. Knowing that there are so many thousands or even millions of dollars of taxes that go unpaid every year leads to this need for collection also if the collection is only completed in the long run. The quality of collection is a valuable thing.