In today’s business landscape, companies are experiencing significant fallout from the COVID-19 pandemic. Companies are therefore seeking strategies that will help to lower operating costs and improve efficiency. Enabled by modern technologies and a highly skilled, multilingual workforce, third- party debt recovery and collection service providers can dramatically reduce operational costs and capital expenditure while optimizing a client’s productivity. Supported by tight client partnerships, debt recovery firms have the capability to make an organization with recoverable receivables a significantly more competitive member in its market.
Here are some of the reasons to consider outsourcing to third-party debt recovery and collection service providers.
Cost Savings – Growing and managing a business during a recession can require considerable resources. With the outsourcing of debt recovery and collection services, significant cost outlays and time spent on staffing, training and equipment can be avoided. Outsourcing debt recovery services allows companies to reinvest in their growth or take a conservative business approach. Also, outsourcing debt recovery and collections can not only allow a company to allocate more of its resources into products and services but can also cut as much as 50% of the operational costs.
Productivity Improvements – Outsourcing debt recovery and collections gives companies access to highly trained professionals with solid industry experience who can manage the focused debt recovery efforts that many companies need. These specialized skills and shared knowledge offer better performance and increased productivity. This means higher quality and more effective work, completed faster than before.
Operational and Regulatory Oversight – Third-party debt recovery and collection firms are open to working closely with their client partners to ensure the same operational standards are met and exceeded. Further, compliance standards are enforced, and these firms are supervised at a regulatory level in most offshore jurisdictions. In The Bahamas, these firms are supervised by the Securities Commission of The Bahamas as Financial and Corporate Service Provider licensees. These firms must have anti-money laundering rules and procedures in place and have regularly performed audits.
Educated Workforce – Successful third-party debt recovery and collection firms know how to source the best talent pool of highly literate, industry experienced, service-oriented candidates able to complete specialized recovery tasks efficiently and effectively. This is achieved through an effective recruitment process. Outsourcing offers the benefit of industry expertise and results-oriented teams able to provide the best possible solutions.
Multilingual Capabilities – Serving multiple markets requires an increasingly diverse language base. In markets such as the Caribbean and Latin America, multilingual team members are readily available at third-party debt recovery service providers.
Scale and Flexibility – A good outsourcing partner provides the flexibility to allocate staff and services based on a client’s current and future needs, and in a relatively short period of time. The ability to scale an array of expert solutions makes expanding easily attainable and allows companies to ramp up based on immediate requirements such as seasonal spikes, natural disaster impacts, and economic changes.
Business Continuity – Multinational third-party debt recovery and collection service providers provide redundancy to mitigate risks such as weather closures. Outsourcing partners can also offer more options in staffing hours to better compliment internal operations, so customers are always in reach. Whether by telephone, web chat, email, or text, while offering round-the-clock support to ensure the job gets done efficiently and effectively.
Focus on Core Business – Most companies opt for outsourcing debt recovery to enable them to narrow their focus on core revenue generating activity and business opportunities. Outsourcing this area allow these companies to eliminate the direct work and management of the outsourced areas. Further, a good third-party debt recovery and collections service provider can assist by sharing best practices, drafting, and executing processes, and increasing overall business productivity to propel future growth.
Improved Recoveries and Collections – By outsourcing recoveries and collections increase on average 2.5 times above the in-house activity results. Third-party debt recovery experts focus on this service only and benefit greatly from the synergies that are created when use of the latest specialized technology meets expertise.
Cultural Affinity to Organizations – Quite often third-party service providers have work environments that are similar in culture to their clients. Such cultural affinity allows for relatable team members that quickly understand client needs, creating more natural interactions, and ultimately improving customer experience. The same professional environment and core values held by most companies are held by third-party debt recovery service providers.