How Do I Support My Internal Efforts With A Third Party?
The key to effective cash flow management is early intervention. The earlier in the delinquency cycle you forward an account to a reputable third party, the higher the recovery results. And you’ll free up more of your staff members’ time to do what they do best — service your customers. When choosing a third party, some key considerations include whether it: Specializes in the propane industry. The company is familiar with your unique challenges and knows how to communicate with your customers. Ask about references and endorsements. Focuses on customer retention. You’ve taken steps to ensure positive communication while trying to return accounts to good standing. Your third-party resource should do the same. Works on a fixed-fee basis. Some firms can charge 33% to 50% contingent fees, which makes early placement cost-prohibitive and any recoveries nominal. Offers comprehensive services. Does the company perform courtesy calls, first-party billing, and third-party collections? The more your partner can do on your behalf, the less the burden on your internal staff. Guarantees results. Most business owners wait to engage a third party to avoid throwing good money after bad. If you work with a fixed-fee based service that guarantees results, you can get a substantial return on your investment.
