Having trouble getting your customers to pay on time? It’s definitely time to get professional help from a debt collection agency.
Debt collection agencies work on recovering overdue debts for credit grantors. They contact your customers on your behalf, via telephone, letters or emails. Some extreme cases may also lead to legal proceedings if the uncooperativeness of your receivables demands it.
Outsourcing your debt collection to a professional frees you of the fuss and hassle of running after your receivables to retrieve payments, so you can focus on your main business while letting the professionals handle your internal accounts receivables department.
When choosing a debt collection agency for your business, here are a few things you should keep in mind:
Agency Reputation
Find an agency that has been in the industry for at least five years.
It is crucial that the debt collection agency you choose maintains the reputation of your brand and company during the entire process of debt recovery. A professional debt collector will always be respectful and firm in their dealings with clients to keep anything from compromising on your brand name, reputation or the customer relationships you have developed.
Hiring a debt collection agency that has a good reputation in the industry will ensure that they are well aware of the ethical and legal guidelines in which they need to operate to recover debts.
Ask the agency for referrals, check their track records and see that their strategies have been proven successful for debt recovery for other businesses as well.
Suitability for Your Company
You should make sure that the debt collection agency you choose to work with is well versed and familiar with the industry your company operates in. This ensures that they will be able to communicate with your clients more effectively and be well aware of any legal guidelines that are prevalent in the industry.
Also, make sure that the agency has enough experience in dealing with similar sizes and amounts of accounts receivables as are present in your company.
Cost
There are many determinants of the fees debt collection agencies charge. These include size of the account receivables, the level of effort and services required for debt collection, the agency’s reputation and experience in the industry, among more. Work with an agency that best suits the budget of your company.
It isn’t advisable to pick a company just because they offer the lowest rates; that doesn’t always guarantee best results. If you look at it as an investment, the amount recovered will be your return on the cost you pay to the agency.
Reduce your Accounts Receivables and Bad Debt Now
Partners In Credit is an expert at recovering your outstanding debt through a variety of treatment strategies.
Our services also include first party, primary to debt warehouse collection of accounts, trace services, legal services, and any other assistance you might require to help you recover your debts. For more information, email us at [email protected] or call 1-888-730-6333.
