“Do you want to know about the things to consider while hiring a business collection agency? Then, please read this article.”
When you are an entrepreneur, there are various things you need to take care of. And one of the most important things in the pool is taking care of the debt collections. Whether they are individual customers or B2B clients, you do need to follow up with them and collect your dues. But do not do it alone; instead, hire a collection agency.
However, here are a few things to pay attention to while you will be hiring them.
Take a look.
Transparency of the commercial collection agency – The first thing you need to pay heed to is the transparency of the commercial collection agency. Does it have insurance? Or, have you gone through its online ratings and customer reviews? Research well. Are you also confident about the ways it uses in order to get back the money from the debtors? If not, then reconsider hiring them as this can hamper your business’ goodwill too. There are plenty of agencies that blackmail their clients or uses really strict methods to get the dues back. Keep in mind that this can ruin your deals with that particular customer for life.
You should always have access to your account information too. It can be through an online portal or through communication with your debt collector. It should be 100% transparent.
Skip Tracing – Sometimes, your debtors might leave the town without paying back the dues. Or, if it is a B2B customer, then they might simply relocate. Tracing them on your own is really difficult and that goes without saying. If you hire a reputed debt collection agency, then you will find out that they use a technique termed as skip tracing which helps them find the whereabouts of the debtors. They will have access to certain database that will allow them locate an individual or B2B customer. So, know if they are well aware of this technique or not.
Reporting to credit reporting agencies – Also, a commercial debt recovery must report to business credit reporting services. If the one you have shortlisted doesn’t, then my advice would be to stay away from that agency and move on to the next best possible option.
Tools and resources – Just like skip tracing, the debt collection agency must use the right methods of getting back the money. This would ensure that you will be getting the maximum benefits by hiring them. Using appropriate database and tools, keeping in touch with an active network of attorney and a proper workflow are some of things you should check before hiring the commercial collection agency.
National and international debts – Do you have accounts that are outside of your country? Then, it is mandatory for you to select a company that not only handles national accounts, but excels at handling international accounts only. Yes, there are many agencies that would say that they do handle such accounts, but alter you will find out that they will outsource it to some newbie or inefficient company when that situation occurs. Ensure that the one you have chosen have global experience and is well adhere to the rules and regulations associated with it.
Average recovery rates: If you are handling over this task to a third party agency, then clarifying about their average recovery rates is nothing but a must.
Remember, that above all, your agency would represent you and your company. The way they will deal with the debtors would give an impression bout your business. So, be very careful. Pay heed to the important points such as the insurance and certificates of the company.
Go through the online reviews and ratings, the methods they use in order to understand. If possible, fix a meeting at first and then decide if you at all want to go ahead with the agency or not. You are choosing a partner when you are choosing an agency. I hope that this article has helped you enough!
To get more such advice, keep reading my blogs.
Author Bio: Donald is associated with a debt collection agency and she is a regular blogger on debt collection. To know more about commercial debt recovery, read his articles and blogs.