Yes, it definitely does. The size of your business has a direct impact on the choice of method you employ for your debt collection process. A small business enterprise will have few debtors and therefore, can choose to personally carry out the debt collection process. However, this is not usually possible for large business entities that have a long list of debtors in their balance sheets. In such cases, collecting the debts personally can prove quite uneconomical and thus, the need to hire a debt collection agency arises.

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At the same time, a small business has a smaller magnitude of debts as compared to a larger business. Thus, the debt collection process relatively handles smaller amount of cash. This further explains why a debt collection agency needs to be hired by larger businesses and not smaller businesses. Besides, the expenses for hiring a Debt Collection Agency can prove unaffordable for the small enterprise due to smaller returns it generates; however, for big businesses, such expenses are insignificant when compared to their huge returns.

Thus, it is important that you evaluate the volume of your business before considering the option of a debt collection agency.

Here are some more factors that need to be considered before hiring a debt collection agency.

1. Your Business’s Overall Turn-Over
The returns generated from your business are important deciding factors of your debt collection strategy. The higher you earn, the higher will be the amount due from your debtors. In such situations, hiring a debt collection agency can be a good option.
On the other hand, if your earnings are low, hiring a debt collection agency will not be a feasible option. In fact, it will add to your costs and in the end, you might earn nothing by hiring a debt collection agency. This is not desirable.
Hence, consider hiring a debt collection agency only when your business generates a high turnover.

2. Type of Debtors
Some debtors will be ideal debtors. They will not only regularly buy products form you but will also make payment on time. If your business has such debtors in majority, you do not need to hire a debt collection agency. On the contrary, if majority of your debts are “sticky” debtors who regularly default, you should consider hiring a debt collection agency. They will take care of all the hassles involved in the debt collection procedure on your behalf for a nominal fee.

Conclusion
If you own a large business that generates a huge turnover and has a long list of “sticky” debtors, it is advisable to hire a debt collection agency. The Double Ace Associates is one such agency that provides excellent services at nominal rates. For enquiries, drop an e-mail at Admin@doubleaceassociates.com  or visit http://www.doubleaceassociates.com/.