Discovering the perfect debt collection agency is never an easy task to accomplish. In the United States alone, there are over 5000 options to choose from. And these agencies are large and small. Some of the bigger debt collectors have as many as 20,000 employees. Other smaller agencies have only a handful of people on staff.
Unfortunately, there is a lot of negative information floating around about debt collection. So choosing the right company is of the utmost importance. Finding a debt collection agency to represent your company doesn’t have to feel impossible. With our help, you can find an organization to represent your business in a professional and responsible manner.
Are you ready to learn the criteria to consider when choosing a debt collector? Follow our guidelines and simplify the selection process starting now.
A Checklist of Criteria to Consider When Choosing a Debt Collection Agency
When choosing a business collection agency, please pay close attention to the following criteria:
- The right level of experience for the job – whether you know it or not, debt collection at 15 days past due is totally different than debt collection when it is past due 180 days. Each debt collection agency will specialize in a specific area. Find the organization that specializes in the type of debt you are looking to collect.
- Licensing, bonding and insurance – each state will have its own rules, but make sure your debt collection agency has the proper insurance, bonding and licensing. Without the right credentials, it is actually illegal to collect debt in certain states.
- Financial auditing and reviews – some debt collection agencies might try to prevent you from reviewing and auditing their financials. Avoid companies like this because they obviously have something to hide. You do not want an agency using your company as a source of capital. This often happens when a company attempts to prevent you from auditing and reviewing the financial side of things.
- Details about the collection process – as a business owner; it is your job to find out all of the details about the collection process employed by the collection agency. Remember, these are your customers and at one time you had a good relationship. You should look into the process and find out what manner your customers will be contacted, how often they’ll be contacted, and how they are going to be contacted. This is vital information that you’ll need to know if you plan to choose an agency that will meet your needs.
- Communication – the collection process is often scary and frustrating for companies, and this is especially true when they are new to the process. Choose a company that is clear with all of their communications. Make sure you understand their fee schedule. Make sure they provide you with a dedicated point of contact. Make sure they have a simple system in place to electronically deliver important files. And make sure your agreement is clearly stated in plain English.
Choosing a debt collection agency does not need to feel totally overwhelming. Use these criteria to make the perfect selection for your business.