What to Look for in a Collection Agency
When clients neglect to pay their bills, it can have a big impact on your business’s bottom line. Hiring a reputable debt collection agency can put some of those past-due balances back into your budget. Ideally, the firm you decide to work with should be able to effectively collect from late accounts without damaging your reputation with your customers.
Selecting a debt collection partner is a serious decision — the right choice will help protect your business and ensure you thrive for years to come. Check out the top factors you should consider before you can choose the right debt collector for your company.
Professional Credentials
Professional organizations uphold the standards and ethics of the debt collection industry, and member companies agree to abide by the best practices established by the organization. Look for a firm with accreditation from the International Association of Commercial Collectors, the Commercial Law League of America, the Credit Research Foundation, and other industry watchdogs.
You should also make sure the debt collector you’re considering has the proper licensing to practice legally — laws require collection agencies have a license to operate. If your company is located in one state and only deals with other in-state companies, a collection agency with a local license is sufficient. If you operate nationally as a company, you’ll want to confirm your chosen debt collection agency has licenses to operate in all relevant areas.
Track Record and Reputation
Check with the Better Business Bureau to see whether an agency has received consumer complaints and how — or if — these complaints were resolved. You want to work with a collection agency that is supportive, responsive to clients, and puts in the time and effort to provide a seamless customer experience.
You should also see if the company can provide references from other satisfied customers. Previous clients offer an honest and practical assessment of what it is like to work with an agency. Reading online reviews and testimonials will give you a good picture of a firm’s reputation and success rate. Consider their experiences to determine if they’ll be the best collection agency for your business’s needs.
Capabilities
As technology advances, the capabilities of many debt collection firms have increased. Look for a firm that offers features such as automated collections, credit and risk scoring, online payments, robust tracking and metrics, and smart outreach. These advanced elements will benefit your company’s bottom line as agencies that rely on the latest technology have a better chance of collecting long-overdue debt.
Choosing a debt collection agency with cutting-edge technology also allows you to stay more organized and keep track of your company’s finances. Whether you have a small or midsize business or you deal with hundreds of thousands of clients a year, working with an agency that has the right technology provides easy access to all the information you need online.
Cost
Debt collection agencies typically charge a percentage of each account they successfully collect. Fees vary depending on the age of the account in question, the amount of debt, and other factors. Most agencies have a tiered pricing structure and do not charge for their services unless they’re successful. Make sure you get the fees and payment terms in writing before making an agreement.
When you’re considering the price of a debt collection agency’s services, remember to factor in the return on your investment. Keep in mind how much money they’ll put back into your pocket by collecting on your debts. Consider both their fee and recovery rates to determine the money you’ll get back before making a major decision.
Standards and Values
As a business owner, you know the importance of maintaining your integrity and gaining your clients’ trust. Debt collection can be a challenging field. If you need a debt collection agency’s services, you want to make sure you find a company that takes its responsibilities seriously.
Evaluate the company’s reputation and culture to determine if it’ll be a good fit for your business. Look through their client reviews and testimonials to see what you can learn about their standards. Do they seem like a reliable business that would in turn ensure your company looks good? Hiring a company with inadequate values or practices can reflect poorly on your business and impact your clients’ perspective of you.
A debt collection agency that holds itself to high standards and inspires confidence with a professional atmosphere is more likely to be a reliable partner than one that doesn’t provide a good first impression.
Find the Best Debt Collection Services With Altus
Businesses all over the world trust Altus Global Trade Solutions for legal, professional, and effective debt collection services. We are nationally and internationally accredited, and our smart recovery solutions can help improve your cash flow and your overall bottom line. Call 504-471-0948 or place your accounts to get started today.
