Posted On: September 16, 2021
Running a business involves ensuring you receive the revenue you need. The problem is, you can’t always trust your customers to pay you the money they owe. As a business owner, you have a business schedule.
Chances are, your employees have equally busy schedules as they try to perform their jobs. So, how can you get the money your customers owe? One way is to hire collection agencies.
Finding the best collection agency partner is a reliable way to get the money your business needs. With effective collection agents, you can get paid faster and increased legal protection.
All you have to do is find the best collection agents. To learn how to do that, check out the guide below!
When researching collection agencies, you’ll likely see there isn’t a standard cost for these companies. The reason for this is that collection agencies take a percentage of the debt they collect. Different agencies receive smaller or larger portions of your debt collection.
If you have concerns about your budget, you may follow the temptation to hire an agency based on the percentage they charge. However, this isn’t a complete analysis.
Several financial factors affect the hiring process for collection agencies. One of those factors is the amount of money they place in your company coffers. Even if a company charges a large percentage, this incentivizes them to collect more money on your behalf.
Alternatively, a low rate company that doesn’t collect a sizeable percentage gives less money than your agency. So, compare the collection percentages of businesses, rather than focusing on the rate they charge. This latter factor determines the ROI you can earn.
When you consider a collection agency with which to partner, investigate their past work. It’s often wise to start with finding feedback from past clients. Find organizations or individuals for referrals about the company you’re considering.
There are other resources to turn to for finding this information. Consider talking with accounting firms and business contacts. You may also want to check with the local Chamber of Commerce or search their rating with The Better Business Bureau.
Another crucial piece of information is the company’s litigation history. Unfortunately, some debt collections use abusive and deceptive tactics when they collect a debt. If they’ve done this, they may have faced charges in court.
The Fair Debt Collections Practice Act protects consumers from such practices. If your potential company violated this act, find another collector immediately.
Lastly, it’s often best to find a collection agency with experience in your industry. Various industries have different collection laws, so a company that’s worked in your field can better navigate legal intricacies.
Collection agency laws require agencies to hold licenses to practice in their respective states. If your business operates with in-state customers, locally licensed collection agencies will prove satisfactory.
However, if you service people across the country, your collection agency must have a license to practice anywhere your customers live. This need may narrow the list of companies you can hire.
When you hire a company, you want partners who do more than acquire the money you need. Instead, you want a company committed to a partnership with your brand.
To that end, look for agencies that offer training or compliance support to their clients. Agencies that educate their hiring companies help them understand the best ways to collect money and handle rogue accounts.
Once again, an agency with experience in your industry proves helpful here. An agency that understands your industry can help you navigate regulations specific to your field. Since these regulations may affect how you can make collections, this is essential information.
When you search for a company, ask if they allow access to audits and reviews of their account activity. Always remember that this agency works with you to collect your money. If you want to see how those efforts bear out, the company should allow you access to that information.
As such, companies should be transparent about their tactics for contacting debtors as well. Likewise, ask if they’ll divulge collector notes, recordings of phone calls, or any other activities in your accounts.
Also, ensure the agency provides regular reports to your company. These reports should explain how well they’re meeting the goals of your business.
The best collection agency partner will review their primary performance indicators regularly with you. This way, you can determine if they assist your organization in a satisfactory way.
In the old days, debt collectors often tried to intimidate debtors into “coughing up” the money. In many cases, this had the wrong effect. Instead of paying their debt, people did their best to avoid any contact with collection agents.
Modern agencies aim to remedy this. Instead of intimidating people who owe their respective companies, they try to resolve the debt.
Agencies do this through several means. First, they offer payment plans to accommodate people’s situations. Second, they allow people several channels through which to pay their fees.
They also help with early intervention, informing people that their agency now manages their debt. Agencies shouldn’t try to startle people with the sudden news of the money they owe.
Finding the best customer service involves using a domestic collection office. Domestic offices allow simpler communication between debt collectors and their clients.
If you’re interested in finding the best collection agency partner, using these tips can help you do it. With these qualifications, you can find more than a collector. Instead, you can find a long-term partner to help your business grow.
If you need a debt collection service, check out our services! We provide our clients with quality debt collection services, as well as tips for helping consumers.