The debt collection industry does not have the most stellar reputation. It is not glamorous like the entertainment industry and people do not particularly want to get a phone call from one. However, new research shows that most debt collection companies are small businesses helping other small businesses thrive.
According to new research by the association of credit and collection professionals (ACA) International, in a white paper titled “Small Businesses in the Collection Industry: An Overview of Organization Size and Employment,” the vast majority of debt collection companies in the United States are small businesses that provide critical services to other small businesses.
According to the study, 48 percent of ACA member organizations have fewer than nine employees. Eighty-six percent of ACA members have 49 or fewer employees and 93 percent of members have 99 or fewer employees.
The research also shows that affordable, professional debt collection services are a critical service for other small businesses. 44 percent of ACA members indicated that between 50 and 100 percent of their customers are also small business clients. In a nutshell, collection agencies are mostly small businesses that provide an important service to other small businesses to help them remain viable and competitive in the marketplace. They help small businesses collect rightfully owed debts in a timely and consumer-friendly fashion.
For more than a decade, BillingTree has been committed to helping collection agency clients grow their business. Contact us today to see how we can partner with you to bridge the technology gap and stay up-to-date on the latest in payment processing.