It is important to find a collection agency that works for you. You must ask yourself at least these questions when you’re searching for the right partner in debt collection.
Will this agency represent my company well? No matter the industry, you want to ensure that you partner with a collection Agency that is professional and reputable. Equally important is finding an agency that will do credit to the relationship you’ve built with your existing clients. A collections agency needs to understand the importance of preserving your own business relationships. You might continue to do business with that slow paying account using factoring or other methods.
Is their pricing schedule cost-effective? Most collection agencies work on a percentage basis, which means they are only paid for revenue that is actually collected. . The agency is interested in keeping you happy and getting paid, and you benefit from additional revenue collected, while improving your personnel resources and time management.
It’s important to pick the right Agency when you’re selecting a collection agency. One of the most critical components is making sure you choose a company that can preserve the relationships you’ve worked so hard on. A second consideration is regulatory compliance – you don’t want anyone associated with your company to show up in debt collection horror stories.
Do I really need to use a collection Agency?
Using a collection agency is no substitue for using the right practices. A good credit manager will be able to reduce the number of accounts that become past due or a bad debt.
if you have too many accounts that fall into the bad debt category, you are doing something wrong. A collection agency might get you some of your money however, you risk losing money and clients. Be proactive.