Why a Collection Agency is Not the Answer to Getting Paid Faster in 2024

You’ve got a solid billing system in place. Invoices are going out on time. But the money isn’t coming in as quickly as you’d like.

So, you’re considering a debt collections agency. It seems like a logical step, right?

Wrong.

Debt collection agencies are a classic case of treating a symptom, instead of the illness. They’ll typically charge you a success fee of between 20-50% of the invoice value to send out emails, letters, and make phone calls.

Essentially, they do what you could easily do yourself, but with less finesse and at a hefty cost.

This isn’t a sustainable, long-term solution. It’s like putting a Band-Aid on a gaping wound.

You need something more effective, something that addresses the root cause of the problem.

The Real Root Cause of Late Payment is Customer Experience

The harsh truth is, late payments often lead to churn. Why? Because interactions around the payment of invoices are so often fraught with unnecessary conflict.

Think about it: how easy is it for your customers to pay you? Traditional accounts receivable is broken. Invoices get lost in email threads, sent to the wrong person, or are simply ignored. And let’s not forget those dreaded dunning letters that create tension and damage customer relationships.

Using a debt collections agency is even worse. Outsourcing invoice follow up to someone who doesn’t even know your customer is a sure fire recipe for heavy-handedness and conflict. You might as well kiss that customer goodbye.

Let’s get back to basics: paying and getting paid are fundamental to any customer relationship.

So why is there still a persistent myth about “bad payers”? Our analysis after years of experience in this area indicates that approximately 70% of late payments are due to a poorly designed payment process, not the customer’s intent to avoid paying.

It’s time to look inward and design your accounts receivable process in a way that makes it as easy as possible for your customers to pay you.

Introducing Upflow

Financial Relationship Management (FRM) is the missing piece. It’s about managing the interface and interactions with customers regarding their payments.

The goal is to create a seamless, positive payment experience that leads to faster, more efficient payments, stronger customer relationships, and ultimately, business growth.

Upflow is a revolutionary FRM platform that transforms traditional accounts receivable into a delightful, customer-centric process.

We help you put your customers back at the heart of your business. By making it easy for them to pay, you’re not just accelerating cash flow; you’re building loyalty and reducing churn.

Upflow gives you the tools and insights to optimize your payment process, with the ability to segment your customer base and personalize your cash collection approach. Our hundreds of customers see increased payment conversion rates, and improved overall financial health.

All-in-all, we’re bringing the best of B2C payments to the B2B world, creating a new standard for accounts receivable.

Get a Demo of Upflow - G2’s Highest Rated Credit & Collections Software in the Mid-Market category

Stop treating the symptoms of late payments. Address the root cause with Upflow.

Our FRM platform is designed to help your business get paid faster, improve customer relationships, and drive growth.

Ready to revolutionize your accounts receivable? Book a demo today and see how Upflow can transform your business.