It does not matter what industry your business belongs to. Sooner or later, you are going to have to deal with clients or customers who are either late on their payments or outright failed to pay. Most businesses can weather these problems at first, but sooner or later it gets to the point where trying to collect on debts take up way too much time and resources, that the bottom line gets hurt even if they eventually pay up. You might want to avoid this scenario and just get the services of a debt collection agency.
However, you shouldn’t get any random agency’s services. You need the best. And in order to get the best collection agency, you have to consider a few things first, such as:
Is the Collection Agency Accredited?
Depending on your business’ location, there may be a certifying body that give accreditation to a commercial collection agency. While you can always hire a company with no accreditation, you stand to get better service and more worth out of your money if you go with accredited ones. This is because agencies that are accredited have adhered to certain standards and best practices, and they have to reapply every year so it is a good indication that the company is accountable, responsible, and committed to certain quality standards.
The Reputation of the Agency
It is best to keep in mind that the business collection agency you hire will represent your company, so any thing they do - be they good or bad - will reflect on your company or your brand. So it is important to keep their reputation in mind. Of course, this is also a great way of knowing beforehand if the agency will perform well. An agency with subpar performance will have a poor reputation in the industry.
Does the Agency Train All of its Staff?
A debt collection agency is only as good as its staff, so it is paramount that the agency you hire should have well-trained, customer-centric employees. It is within your right as a potential client to inquire as to their staffing and hiring practices. You don’t want an agency with rude, unprofessional staff because that could harm your business and turn away potential future clients.
Does the Agency Coordinate with Credit Reporting Agencies?
One mark of a professional and effective collection agency is that they coordinate with and report to business credit reporting services. Maintaining a relationship with these credit bureaus can be time and resource intensive on their part, but it means that they stand a better chance of collecting because commercial debtors are deterred from foregoing their payment, since they know that failure to settle outstanding debts can negatively impact their credit-worthiness as an organization.
At the end of the day, all businesses who are mulling over hiring a debt collection agency should be well aware that they are not merely getting a vendor, but actually getting the services of a business partner. The end goal should therefore be maximizing the collections while ensuring that your organization is represented positively by your agency.
oan Geller has spent the past few years working in a second-generation, family owned commercial collection agency. She has extensive experience in providing commercial collections to companies nationwide. Know more about the best collection agecy.