Functional sourcing is a common practice in start-ups and established businesses. Functional sourcing “is the contracted agreement to conduct specific individual job roles by an organization for another organization” (Functional sourcing – Wikipedia).
Functional sourcing allows businesses to scale up without hiring additional staff (don’t forget benefits, on-board training, office space, etc.), find a larger pool of experts, and can connect your company to industry experts. It can also prevent you from cobbling piece-meal responsibilities into one position where it is difficult to find that skill set.
If this makes sense, why don’t more companies with past due receivables reach out to third-party collection agencies? With any functional sourcing, there is a chance for lost communication, lack of control, or concerns with quality. What is the first thought that comes to mind when you think of a debt collector? I’m guessing it aligns with those downsides.
But collections can be the hero of your company’s story! With a continuous labor pool shortage and increasing stresses in the consumer’s life, past dues can go off the railway for any business or customer. A collection agency who can align with a company’s brand, provide great customer service to their consumers, and solve past due issues for the business and debtor can provide needed assistance and stabilize the financial health of all parties.
When you consider outsourcing payroll, human resources, and other key responsibilities in your growing organization (or short-staffed one), keep in mind that collection agencies who put empathetic collections and customer service at the forefront can bring much-needed relief.
Learn more about empathetic collections at What is Empathetic Debt Collection? (beyondgreensolutions.com).