Why Use a Collections Agency?
When you are a business owner, you offer services and products in exchange for payment. But when customers fail to pay their bills on time or even refuse to pay at all, your business suffers. Rather than wasting your own time and resources trying to recover the money owed to you, you can hire a collection agency service to do the legwork for you. The best collection services, such as Your Collection Solution, National Association of Credit Management and Smyyth, have the ability to track down customers and request payment, even from international customers. These services send letters and place phone calls to your debtors, and many offer litigation services should the situation require further legal action. The best services also do not charge anything if they fail to recover your funds, so you won't lose anything attempting to resolve unpaid bills.
As debt collection can be a sensitive subject, you want to look into the company you choose in order to gain perspective on its reputation. The way it treats your debtors reflects directly on your company, either positively or negatively. While all services should be proactive and persistent, an aggressive collection agency can leave a black mark on your business. You also want to choose a service that deals honestly with you, reveals all of its processes and is upfront about what you can expect. We considered the reputation of the services we reviewed, but we recommend doing your own research as well. To learn more, have a look at our articles on collection agencies.
Collection Agency Services: What to Look For
When choosing a collection agency, you want to ensure that the service offers features that benefit your company. Most services offer standard contact means, and many recover funds from foreign countries. If you feel you may require legal assistance, look for a service that offers litigation support. The following is the criteria we used to determine the best collection agency services.
Collection companies all use typical means of contacting your debtors in an attempt to recover your funds. Most services offer skip tracing, which is a means of tracking down hard-to-find people, including if they have skipped town to avoid paying their debts. Letters are generally the first step of contact and can be very effective. Most services send two or three letters before taking further action. If basic means of requesting payments are unsuccessful, many services offer litigation services should you decide to pursue legal action against your debtor.
If your business deals with international sales and accounts, you want a service that also offers foreign collections, which many services do. The best services can collect from all over the world, including Africa and Asia.
When considering the features of the company, the service's reputation is a main concern. We looked at customer reviews online to determine how it treats both you and your debtors. We also considered how long a service has been in business, as a company that has been around for decades knows what it is doing and is successful for its clients. Another consideration are the professional references, industry affiliations and licenses the company has.
A useful feature is an online system and client portal. Most services offer this option, which is very beneficial for receiving up-to-date information on the progress the company is making in recovering your monies.
Help & Support
Because you work closely with the company and want regular updates, you want a company that is proactive and quick to respond to any inquires you have as well as one that you can easily get in contact with when you need to. All services we reviewed offer support via telephone and email, though not all are as efficient in responding to inquiries. Some services offer live chat on their websites, which is a useful feature. Testimonials are helpful when researching the company's reputation, and it speaks volumes when a company can provide a large number of satisfied clients.
When selecting a collection agency, you want a service that is reputable and honest, one that fights to recover your funds without tarnishing the good name of your company. Most services offer similar features, so knowing the way they execute those features and services will be the deciding factor when choosing a company to recover the funds you've earned.