Choose the Best Collection Agency
Don't let past-due accounts go unpaid any longer. By hiring the best collection agency company, you can go after debtors that haven't paid you the money you're owed. Collection agencies save you from pursuing past-due accounts by doing the work for you in exchange for a percentage of the recovered fees.
The Best Collection Agency Process
The collection agency will gather basic information about the debtor: company name, employee name, phone number, mailing address, and email addresses. You also let the agency know how much is owed, when it was due (they'll only work with accounts over 30 days old,) and provide all communication you've had with the debtor including emails, letters, and archived voice mails.
The best collection agencies make initial contact with the debtor through phone calls and letters. Collectors also use "skiptracing", which attempts to track down debtors using online search techniques, networking, and special directories. If these methods fail, collectors may end up taking legal action to retrieve the funds.
You may have heard horror stories about aggressive collection agencies using threats and intimidation to collect money, these are definitely far from the best collection agency company. A reputable collection agency simply doesn't work that way, they follow set practices professionally and respectfully. This is important because they are representing your company and you don't want to appear in a bad light.
Even if a collection agency wanted to use scare tactics, the law doesn't allow them to. They have to comply with the Fair Debt Collection Practices Act which forbids harassment and requires all debt collectors to treat debtors fairly.
As an added level of precaution when choosing the best collection agency, make sure the service you work has up-to-date Errors and Omissions Liability insurance policies. This protects you and the agency if debtors claim they were harassed during the collection process.
Finding the Best Collection Agencies
Since the collection agencies work directly with your customers, you should observe how the agencies do business in person. Review their collection letters and sit in on phone calls to investigate the process. Also, find out if the collector has experience retrieving past-due funds for businesses similar to yours and learn what each collector's specific process is for contacting debtors.
Finally, if you choose a collector and don't feel they are doing the job well, you can go back to shopping around. The best collection agency companies don't require long-term contracts or exclusivity, so you can send a few of your delinquent accounts to another agent to see if you get better service.Ready to Compare Collection Agencies Price Quotes?