Characteristics of a Good Collection Agency
If you’ve got a stack of delinquent accounts receivable, and are running out of ideas on how to settle them, you’re probably considering getting on board with a collection agency.
The fact is any business working with paying customers is bound to have some who don’t pay. Most businesses can benefit from the help of a collection agency. However, because a collection agency will be handling some of your most sensitive accounts, you want to be sure you pick one that will recoup as much of your losses as possible, in an honest and professional way. Let’s consider some of the characteristics you will find in a good collection agency.
A Sterling Reputation
When choosing a collection agency to work with, it’s best to ask around and see who has a reputation for doing a good job. Check with other businesses you work with to see who they’ve used and what their experiences have bee. In particular, ask others who are in the same line of work as you are, since they will lead you to a collection company that is more experienced with your types of accounts.
A Personal Touch
Rather than choosing the least expensive collection company, you should try to choose one that has something to offer your business specifically. Many times, bigger collection companies can give you a great deal, but they lack the personal attention that brings increased skill and productivity. Using a collection agency that specializes in your line of work, or that manages accounts in way you’re comfortable with will bring you a bigger return on your money, which will add up to savings in the long run.
Before entering into a contract with any collection agency, double-check that they have all of their ducks in a row. Check review forums to see if they’ve had an unusually high level of complaints lodged against them for unfair practices. Ask to see their certifications and licenses to make sure they’re meeting industry requirements. Ask them if they are licensed to operate nationwide, since your customers could be located anywhere by the time the account is settled. Verifying that the agency you’ve chosen is responsible and reputable will ensure that you’re placing your valuable accounts in good hands.
Don’t be afraid to ask questions. After all, you’re trusting this agency with sensitive information and a good amount of money as well. Take your time and be willing to pay more for someone you trust. In the long run you’ll have a higher return and a higher level of satisfaction.