If you run a business, you are sure to have some customers who require a lot of follow-up before they pay you
. Often you spend too much time and energy to collect money that is rightfully due to you. Giving this task to a collection agency will help you:
Concentrate on your core business rather than on non-core tasks like debt recovery.
Increase your debt collection and reduce bad debt.
You must consider the following factors while selecting a collection agency:
1. Experience
How many years of experience does the collection agency have?
Does it have experience in the debt collection services you require, such as commercial, medical or check collection?
Can it collect debt for your kind of account balance?
Can it give references?
2. Professional Collectors
Are professional collectors in the collection agency well trained to deal with your customers? Remember, they are going to represent you and tempers may run high in debt collection. One bad conversation can spoil your relations with the customer.
3. Expertise In Local Debt Collection & Debt Collection Laws
Debt collection agencies use many techniques. These include skip tracing and written communication.
Does your debt collection agency have enough local sources for skip tracing or finding people who are avoiding you?
And does the agency have good knowledge of local debt collection laws so that they don't go beyond legal boundaries?
Breaking laws for collecting debts can prove more harmful to your business than bad debt. If your customers are spread across multiple states, it is better to select from collection agencies having offices in those states.
4. Options
Does the collection agency offer you multiple ways of debt collection and will it follow only ways approved by you?
5. Value-Added Services
Does the agency offer value-added services such as advice on contracts and legal documents and eliminating customers having bad payment histories?