These days, many businesses are opting to hire experts to deal with their debt collections because most of the time, they do not have the expertise and the staff to handle it. When choosing a business debt collection agency to do the collection for your company, make sure to ask the necessary questions first:
Do you have certification?
One of the biggest concerns in the collection process is getting involved in legal situations. Because of this, it is important that the company you employ is certified. In general, these agencies are certificated by the Commercial Law League of America. An agency that adheres to its strict regulations as well as the Fair Debt Collection Practices Act means that it is credible and has the ability to prevent legal harassment.
What is your payment process?
This is one of the most important questions that you should ask before anything else. Various agencies and collections attorneys are paid on a percentage basis wherein they just earn on the debt they collected. This kind of system may look more appealing but there are companies who charge high rates. Choose an agency that has flexible payment systems that offer various options such as hourly, contingent and hybrid rate arrangement.
What is your collection process?
It is essential to understand that everybusiness debt collectioncompany will have different collection processes so it is best to ensure that you know exactly what it is and how it works. You must feel comfortable with the systems that they use and make sure that they are legitimate. Keep in mind that if the agency you choose is not legal, your business could be at risk. If the collection agency declines or is hesitant to provide that information, it is best to consider a different agency.
Most collection agency services start the collecting process by making calls or sending letters to the debtor. A skilled collection lawyer knows that this tactic seldom works and instead, he/she will file a case to go after the bank accounts of the debtor. This way, debtors do not have the time to hide their assets.
What areas do you cover?
Most agencies work on certain areas and if you need them to collect outside their covered areas, they usually ask for extra fee. The secret to employing the right collection agency for your business is to ensure that they have the ability to collect in the area that you will require them to. Take time in choosing the right agency that covers many states and charges appropriately. Also, note that a lot of debt collection services specialize in certain industries so it is best to opt for one that has experienced working in collections for the type of industry you are in.
How do you communicate with clients throughout the entire process?
For some businesses, relying on a debt collections agency to deal with their delinquent clients can be stressful and most of the time, they want to be updated in each step of the process. On the other hand, there are some businesses that just want to be informed when the development has been made or the debt has been collected. So, before asking this question to the agency, it is best to determine yourself as to how you want to interact and how frequent you want to be updated. The reporting procedures of an agency must be distinctly defined and everything must be recorded for future reference.
Getting a qualified business collection agency guarantees that your personnel can dedicate their time to other more important tasks in your company instead of straining themselves on collection calls.
Joan Gellers is a famous blogger and affiliated with a reputable collection agency. Having a wide experience working with collection agency services, she writes for different websites about tips and tricks on how to hire the best business debt collection company.