Our most recent blog post tackled the idea of outsourcing judgment collection for some of the same reasons other businesses outsource certain tasks. Those reasons included cutting operational costs and getting access to industry expertise. We encourage you to read the entire post if you haven’t done so already. This post will serve as a follow up.
We have five more reasons to outsource judgment collection. As with the previous post, each of these five reasons is generally applied to outsourcing any kind of task a company doesn’t want to keep in-house. All are applicable to judgment collection in some way, shape, or form.
So without further delay, here are five more reasons to outsource those unpaid judgments:
1. Better Manage Cash Flow
Cash flow is a concern for any business. Companies need to maintain a certain amount of cash on hand to fund daily operations. When you are spending money trying to collect judgments, you are sinking valuable cash into a proposition that may take years to complete. That is an awful long time to tie up cash.
On the other hand, outsourcing to a debt collection agency like Judgment Collectors means your company immediately stops spending on collection. We cover all our own expenses from start to finish. And because we work on consignment, you don’t pay a dime if we do not succeed. Outsourcing frees up financial resources so that your company can better manage its cash flow.
2. Delegate Other Tasks to the Accounting Team
You may currently be in a position in which key members of your accounting team have to spend an undue amount of time on judgment collection. You are unable to delegate other tasks to them because they simply do not have the time. Outsourcing solves that problem. Turn your judgments over to us so that you can start delegating those more important tasks to members of the accounting team. The result should be a more productive workforce that gets more done.
3. Reduce the Risk of Total Loss
There are never any guarantees in debt collection. It is entirely possible to win a judgment against a debtor and never see a dime. That’s true whether you outsource collection or keep it in-house. But the reality is that your chances of failure are greater if you continue trying to collect on your own.
Outsourcing to an experienced judgment collection agency reduces the risk of total loss. You may not get everything you are owed by outsourcing, but the chances are you will get at least something. Something is better than nothing, especially if you don’t have to do the work to get it.
4. Reduce the Legal Burden
There are times when collecting from an uncooperative debtor requires further court action. Outsourcing doesn’t eliminate that. But having professionals on your side can ease the legal burden of trying to collect. Our assistance can be a tremendous help when an uncooperative debtor forces legal proceedings to continue for years.
5. Better Reputation Management
Finally, outsourcing judgment collection offers the opportunity for better reputation management in that your company’s name is no longer associated with collection. We become the ‘bad guys’ so to speak, which we don’t mind. Meanwhile, your company can focus on strengthening brand appeal and loyalty.
Companies outsource tasks for a variety of reasons. They all have one primary goal: to make the company better at what it does. Nearly every reason for outsourcing front- or back-office tasks can be applied to judgment collection. Think about it. If your company is struggling to collect unpaid judgments, consider turning them over to us.