Employing the service of a Debt Collection Company in India

Posted by maxbpoblog Jan 04,2021

Debt recovery in a diverse country like India can be a complex task. For one, the country speaks 23 different official languages and has diverse cultures creating differences across various states.

Adding to this are the stringent statutory regulations and legal issues that makes the process more complex.

These complexities need expert handling which is often not possible for in-house credit control teams and the companies find it to be a better option to seek assistance from a debt recovery company.

Benefits of Employing a Debt Recovery Agency

• Expert Service: A debt recovery collection agency will have a team of experts who are highly qualified to handle this process and have experience and expertise to handle diverse kinds of cases and people.
• Higher Productivity for Company: Debt collection is a process that requires a significant amount of dedicated time, effort and resources. Companies who outsource this function to a debt recovery agency are benefited by being able to use their resources along with time and effort towards realizing the vision of the company with a strategic and focused approach. This accelerates their productivity and growth.
• Improved Cash Flow: As an outsourced debt recovery company is better equipped to handle debt recovery cases, their rate of recovery of debts is as high as around 90%. This results in improved cash flow in the company and helps in smooth running of its operations. This ultimately leads to an enhancement of profitability of the company.
• Round the Clock Accessibility: The debt recovery collection agency has an enthusiastic, determined result oriented team who is readily accessible round the clock.
• Maintaining Positive Working Relationships: Debt collections can sometimes be tricky. Companies, while they are keen on recovering their debts, they may often not want to disrupt their relationship with their clients. This is well understood by the debt recovery company. Hence, while in the process of collecting the debts, they maintain necessary industry compliance and maintain a cordial and positive relation with the client.

Points to remember while selecting debt recovery company?

As informed earlier, collecting debts in an Indian scenario can be tricky and needs special expertise. Hence companies planning to hire a debt recovery agency must keep a couple of points in mind.

The points to keep in mind are as follows:

• The collection agency must have a local collections network.
• The agency must have past experience in collecting debts in India.
• They must have a good feedback from Client.
• They must be regulated or accredited by an organisation like the FCA or similar agency.

Companies can keep these above mentioned guidelines in mind and employ the service of a debt recovery collection agency to make their company grow and become more profitable.