As they say in the old phrase, “time is money.” Additionally, as unpaid accounts mount, the time and resources required to collect on them decrease. So, inevitably, hiring a financial debt collection agency will turn out to be the most economical way to raise the profit on these accounts. But not every first-party or third-party debt-collecting company is the same. For this reason, it’s crucial to have a strategy in place before you hire the right agency to support the achievement of your company’s financial objectives.
Here are a few tips to help you find the debt collection agency that’s right for you:
Use Customer Service-Oriented Collectors
A debt collection agency cannot simply provide the service you require at the lowest cost. They should also be consistent with your brand. This means that you should pick a financial debt collection agency that values providing excellent customer service, has a solid reputation, and has other characteristics that are consistent with your brand’s values.
Inquire About the Agency’s Quality Control Measures
Understanding the controls a collection agency uses to manage its quality is necessary to understand how to hire one. Because of this, it is crucial to find out what quality control procedures the debt collecting service employs and adheres to. Verify their employment procedures and inquire about how they respond to online comments. Do their staff undergo background checks? Inquire if they record calls for quality control and training purposes. While looking for a reputable collection firm, all of these are reasonable questions to investigate.
Inquire About Web Portals
Find a financial debt collector that provides an online portal to make several managing accounts easier. You must not only choose the best agency but also be able to stay in constant communication with them throughout the relationship if you want to receive the most value out of them. In addition, an online gateway guarantees accountability and effectiveness. It makes it simple to verify your accounts’ progress and upload multiple bulk collection accounts at once.
Verify Insurance
The third-party collection agency you want to hire can hold your business liable if they break any rules or laws if they don’t have the right insurance. Therefore, confirming the company’s insurance coverage is crucial and ensuring your business is shielded from potential litigation should the debt collection agency break any rules or laws.
Look for Complaints, Google Reviews, and Facebook Reviews
Look up the collection agency on review websites like Google, Facebook, and Yelp to see if any complaints have been made. Additionally, you should look at how they handled the complaints process. Finally, keep in mind that a debt collection firm is a representative of your brand, so you want to be sure that they respond appropriately to criticism and complaints.
Compare Fees
Always evaluate the different rates and contingency fees charged by the debt collection companies you’re thinking about using. Get quotes from three or four debt-collecting companies to start, then compare each price. A reputable debt collection company will be open and give you all the details you need upfront so you can choose the finest agency for your requirements. Attempt to keep in mind that you get what you pay for. Higher recoveries are not necessarily the result of lower commission rates. In certain cases, paying a higher rate is preferable if you know the agency will generate fewer complaints while collecting more money.
Make Sure They Are Up-to-Date With Collection Legislation
Debt collection companies must stay up to date on new rules if they are to avoid breaking them and endangering your business. So choose a debt-collecting company that is knowledgeable about current legislation and collection rules.
Check Into Skip Tracing
Skip tracing is a method used by financial debt collection agencies to track down debtors who have moved without providing a forwarding address. This function is crucial to have in order to increase your chances of recovering money that is owed to your business. If not, you might be funding a “wild goose chase” to track down debtors.
Ask if They Give Feedback on Your Account
Collection agencies learn a lot about why customers do not pay. Ask if they give feedback on how to improve the credit granting and collection process to help you reduce bad debt.
Know Your Recovery and Why
Discuss the net back or the portion of outstanding accounts your business can look forward to getting back. A reputable collection agency uses effective strategies that result in consistent and higher debt recovery for a higher net back.
Final Thoughts
Having a strategy while looking for the best collection agency is important, but it doesn’t have to be difficult. The good news is that you can locate reputable debt collection companies with the knowledge required to collect a range of debts.
