Software Companies Are Now Flocking to Collection Agencies

ORLANDO, Fla., June 6, 2019 /PRNewswire-PRWeb/ -- Over the past 5 years, there has been a metamorphosis in the technology and software sector. Modern tech solutions are now being developed to be end user-friendly so that business owners can utilize software solutions without needing advanced coding skills. As technology becomes easier to integrate and functionally usable by the general public, software companies are experiencing tremendous growth and expansion. As of this article, the S&P 500 Information Technology sector is up an astonishing 19.33% YTD.

With this growth comes the increased need for Accounts Receivable Management solutions to ensure that revenue needed for expansion is collected. Collection agencies like AccountsReceivable.com can be incredibly valuable to emerging software companies because they typically do not charge a fee unless they collect. With many software companies operating under subscription payment models, unpaid and unrenewed subscriptions are commonplace issue that many software companies encounter. When a subscription payment is missed is vital to contact the customer, secure payment and maintain open services with that customer. Many software companies take the approach of simply disconnecting services when a payment is missed. This, unfortunately, can create problems for the customer and alienate them making them less likely to continue using services altogether. Conversely, when a company quickly engages the services of a collection agency like AccountsReceivable.com, the company can focus on providing top-notch services to customers while the collection agency addresses the topic of nonpayment.

Additionally, collection agencies allow the company to focus its resources and efforts on growth instead of developing an internal collection department. Instead of spending thousands of dollars on training and payroll that is associated with building an internal collections team, they can outsource their accounts at no cost when results are not produced. Collection agencies also protect emerging tech companies by acting as the buffer between them and their non-paying customers. Often customers will take to review sites and social media when contact about past due balances. This is a defense mechanism that can harm a company's reputation. When a company uses a collection agency the attention will be focused on the collection agency and not the company that is owed the money.

As technology continues to advance and software becomes easier to use and integrated into every facet of our lives, software companies will continue to experience debt. These companies should seek the help of an experienced collection agency like AccountsReceivable.com.

SOURCE Accounts Receivable