If a collection agency has a reputation in the industry as an unprofessional
, unethical company you may want to think twice about contracting with them. If they are treating your customers without respect, chances are this will also affect the way they treat their clients at some point. This could also lead to problems with paying clients on collected funds. Its relatively easy to check on a collection agency through the better business bureaus website. Normally they will have records of customers that have had issues with that collection agency.
A good question to ask is also about their technology. Does it allow for clients to place accounts as well as see activity 24/7 365 days a year? This allows clients to verify that work is being done on their accounts and to verify payments without having to take the time to call or email the collection agency. The next thing you may want to consider is talking to references. Does the collection agency seem to have knowledge of collections, and how do they respond to clients? Do they respond quickly and are they able to offer solutions to their clients questions correctly and efficiently.
Depending on the client, there may be some value in the commercial collection agencies ability to recover, store, and sell the equipment that has been repossessed. A good question to ask is, does the collection agency have this ability. A one stop shop is a great option to have for clients. They are able to place an account for repossession and follow it through to deficiency balance collections if needed. This should all be done on a contingency basis so the leasing company doesnt have to incur any upfront costs and allows time to concentrate on current and new customers.
Finally, has the commercial collection agency ever done collections for a client in the equipment leasing industry? Do they have the knowledge to interact with your customer in a proficient and knowledgeable manner? This will inevitably lead to greater return for you if you can answer these questions with a yes. If the commercial collection agency matches all of these requirements we can assume they will be successful for their clients thus recovering more of your revenue all the while allowing you to concentrate on growing you company and not on the past due receivables. Good luck!