Millions of business owners find themselves head over heels when collecting customer and client debts, especially when customers refuse to pay their bills. Debt collection agencies like Bluechip Collections focus on recovering all of a company’s past due debts, enabling them to get back on the right financial path with money rightfully due to you. Many collection agencies promise great results but return just the opposite. Research any collection agency of interest thoroughly, keeping the 7 tips below in mind. This information reduces the odds you’ll hire the wrong agency in your time of need.
1- Agency Reputation & Accreditation
Every collection agency earns a reputation based on past customer experiences and relationships. Pay attention to an agency’s reputation and avoid any without a stellar background that proves they’re legitimate, trustworthy and that they get results.
Look for an agency with at least five years’ industry experience. Although smaller start-ups may offer lower fees, they often provide unskilled, unprofessional work and may not be around next year. The debt collection agency chosen is a reflection of your business. A reputable collector always protects the integrity of your firm, acting in a professional manner that doesn’t cause any damage to your brand reputation.
Choose a debt collection agency with as many accreditations as possible. An agency accredited by the Better Business Bureau, American Fair Credit Council (AFCC,) and the International Association of Professional Debt Arbitrators (IAPDA.)
Finally, ensure the collection agency is licensed and insured and who offers references upon request. Choose a debt collection agency with an established track record of success.
2- Meets Your Needs
Debt collection agencies offer both personal and commercial collections. Determine which type of company is best for your needs. Information such as the size and amount of your claims and the type of debt can better determine which type of agency is best. Many collection agencies specialize in collecting certain types of debt. For example, many debt collectors specialize in medical bill collections. Don’t hesitate to ask questions, check references, and ensure that you feel comfortable with the company before hiring.
Debt collection agencies often offer a ‘No Collection, No Commission’ payment policy, which ensures you do not spend money on unsuccessful collections. Charges for service varies from one company to the next, even still. Factors such as the size of the debts, the number of accounts, and the amount of work necessary to collect the debt impact the cost of service. Many agencies do offer tiered pricing for larger accounts/amounts.
4- Success Rates
Debt collection agency success rates are sometimes tricky to establish, so it’s best to find a company that provides comprehensive reporting on such information. You need a qualified collection agency that has proven success to ensure the same results in your collection cases. Consider factors such as the length of time the company took to retrieve the debt, the number of cases that went into litigation, etc. to find the best agency.
Debt collection agencies should use the latest, most up-to-date software offered in the industry. It’s also imperative that employees are specially trained to use this software and deal with sometimes complex issues that may arise that software simply cannot resolve alone.
6- Collection Practices
Ensure The debt collection agency chosen adopts practices that follow laws and regulations, as well as the beliefs of your company. Choose a provider who uses strategies and techniques that bring results. They should be able to track down debtors who are hard to find and get those who refuse to pay to come clean with the money they owe.
When you hire a collection agency, you want to work with a provider who is professional, reliable, and open communicates important details and information about your collection cases in a timely manner. Read online reviews, take a look at the company’s social media pages, and otherwise ensure they’re a provider who goes the extra mile to get money for you and offers dedicated service in the process.
Choosing the right debt collection agency eases the worry that oftentimes accommodates unpaid invoices and debts. Use the information above to reduce headaches when choosing an agency. You can find a top-notch collection agency if you know what to search for in that provider.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.