What To Consider When Choosing Credit Control Services
In a time when the economy is in a tailspin and companies the world over are experiencing cash flow problems, businesses cannot afford bad debts
. But they still happen with increasing frequency that bluntly put is scary. Seeking help from credit control services to resolve a companys financial woes is fast becoming a popular solution.
Debt collection is a time consuming exercise that can sometimes be totally unproductive. Add to that the nuisance value of continually chasing up customers who obviously dont want to pay! Customers relocate and sometimes disappear into thin air most businesses do not have the manpower or expertise to follow through on these collections.
Credit control services offer diverse services ranging from invoice chasing to debt collection services, commercial debt recovery, credit vetting and more.
Highly expert debt collectors and superior computer technology are allowing these companies to provide bespoke services to meet individual company requirements. A good credit control company will work with the business to reduce debtor days and maximise cash flow.
Debt collection, legal expertise and tracking debt recovery cases are all part of the package offered by credit control services. In order to select the best credit control company for your requirements, there are certain factors you need to consider first.
Top of the list is to check that the credit control service is licensed and holds a good reputation as well. If the company makes the mistake of choosing an unlicensed service, it becomes personally liable if collection laws are violated. A simple harassment charge can cost a business as much as 25,000!
The credit control company should be bonded and insured. If the company is charged with a lawsuit, it should be financially sound to handle it.
Make sure the hold harmless agreement is a part of the main contract or a subcontract that you sign with the company. This is your business protection against legal liabilities on the credit control companys part.
The fee structure is an important factor and should be discussed in detail. Some companies take a flat fee upfront while others take a percentage of the money recovered. You need to consider which option will be financially viable for your company.
Apart from the factors mentioned above businesses need to answer to the following questions when choosing credit control services:
Is the company registered with professional societies or organisations?
Will the company allow you to monitor your accounts and track progress online?
What kind of experience does the company have?
What sort of a reputation do they have in the market ask for and check references?
Will they provide you with regular progress reports or just disappear for long periods of time leaving you guessing?
What sort of practices do they engage in to recover monies due are the practices legal and ethical or do they cross the line?
Does the company have the facility to track and recover bad debts from customers who are no longer reachable?
Can the company provide you with legal expertise when needed?