. If so, we applaud your commitment to improving your finances and establishing an efficient system for tracking outstanding debts.
However, before you sign on the dotted line with any company, there are some things worth knowing about them first - and these will vary depending on whether they are a business-to-business or business-to-consumer agency. This blog post discusses what to know before hiring either type of agency!
- Hire an agency that can handle the complexities of your business.
- Find a company with a proven track record and strong customer service.
- Get your debt situation under control.
- Feel confident about handling any future financial difficulties on your own.
not because they cannot recover debts, but because the entire debt collection task is quite time-consuming. If you are one such company, you probably might be wondering how to hire a debt collection agency?
If you really want to hire the right debt collection agency for B2B collection, here’s a checklist for you that will help you choose a good one.
Business-to-Consumer Agencies: If you're looking for a debt recovery agency primarily to collect debts from consumers, then the first thing to look at is local and state requirements. Typically, these agencies must be registered with the Secretary of State's Office in your area so that they can legally operate locally. You should also get references on their work history and reputation within the industry before signing an agreement - this will give you more insight into how well they handle customers' complaints, as well as what their rates are like.
is to take recommendations from other business people. You can also make a Google search for the collection agency industry of your choice. After rounding up a few agencies, you need to do proper research on each. You can do so by checking the ratings of the agency on the Better Business Bureau. Moreover, you need to check factors like the overall experience in years, the recovery rate, and agency reviews.
2. Membership In Organizations
An agency having membership in the following industry organizations depicts that the agency has a good standard and adheres to them. One of the prominent organizations is The International Association of Commercial Collectors or IACC or ACA International, RMAi.
3. Suitable Fees
The standard fee structures of a collection agency are the fixed fees or contingency fees. A fixed fee structure means the agency works on flat rates, whereas contingency means that the agency will charge a certain percentage from the total amount recovered.
4. Skip Tracing Service
Skip tracing is used by agencies to track down people that have fled or no longer have an accessible mode of communication. This method helps the agencies track down any alternative contact available to get in touch with the person.
5. Licensed Agency
Your state may have some . Make sure that the agency you choose has fulfilled those requirements and has an appropriate license for your state.
6. Specialization In Industry
Pick an agency specializing in your particular industry, because the agency will have a greater insight on how to collect debts efficiently. Moreover, an agency with specialization will have a better success rate.
7. The Debt Collection Methods
Any debt a collection agency must use only professional methods to collect the debts. If an agency uses unfair practices or techniques to collect the debts, it can hinder your name. Always ensure that the agency you hire abides by the laws under FDCPA.
Make sure you consider all the points mentioned in the above checklist, as it will help you to hire a debt collection agency that is suitable for your company.
Conclusion: So, you want to hire a debt collection agency? If so, here are five things not to do before hiring one. First and foremost- don’t just pick the first company that comes your way. You need someone who has experience in this field of work and is well qualified for it. Second, make sure they have enough manpower because if they cannot handle all your cases at once, then what good will they be doing anyway? Thirdly, ask them how many years they've been in business -not months or days! That's only going to tell you how long ago their website was created (and we know those can come up pretty easily). Fourthly--make sure you check out reviews online from past customers! Learn more