Having customers who are refusing to pay your invoices is a common thing for many businesses. But that does not mean that you can’t recover your money. What you need is to hire a debt collector deal with such customers. These are the people who are authorised to use legal means including litigations to collect other people’s debt.
However, if you are planning to outsource debt collection services, you need to be very smart and informed. There are many collection agents in the market, but not all can meet your expectations. So how do you pick the best debt collection agency? Well, we’ve got you covered. We have rounded up some of the best tips to pick a collector agency.
6 tips on How to Pick the Best Debt Collector
Accreditation and Reputation
The first thing that you need to look for in a collector agency is accreditation by a reputable authority. In every jurisdiction, there are institutions that regulate and accredit collectors. In the US, the Bureau of Consumer Financial Protection regulates all debt collection agencies. So you need to check if they have accreditation from these authorities. You must also check their reputation in the market to avoid scammers. You need to check if they have satisfied customers in the market. Asking for referrals is highly recommended when selecting a collector.
How Long Has the Collector Been Around?
The experience of a collection agency is another crucial factor to take into consideration. In the market, you find collector agencies that have been operating for decades and those that are just months old. We highly recommend outsourcing an experienced agency even if they are likely to charge a higher fee. Collectors that have been around for years or decades knows the best practices that can deliver fast results based on the debt portfolio. Their reputation is likely to scare your customer to pay the debt faster. In addition, the chances of debt recovering are very high.
Do They Fit You?
The other thing that you need to consider when choosing a collector agency is whether they fit your business needs. Is the collector familiar with the kind business that you do? Are they familiar with the terminology in your business niche? From instance, if you are in the insurance industry, the collector agent should be familiar with the insurance requirement and the law governing this industry. You also need to check how long they usually take to recover the debt and if they can handle litigation if required. These are factors that will determine if the agent fits you or not.
Success Rates
The other thing that you need to take into consideration is the success rate of the debt collection agency. It will be unfortunate if you hire an agency that is relatively new in the market because it will be difficult to gauge their success. Hire a debt collectors Melbourne who has been in the business for at least five years and more. Such agencies must have worked for several cases and have a scorecard from where you can gauge their success. Check out how many jobs has the agency handled and how many did they deliver, and how long did they take to recover the debts. That is what success rate is all about.
Do They Practice Best Practice?
Some debt collection agents that do not use the best practice to execute their job. Some use intimidation and unlawful practices to recover the debt. Outsourcing such agencies are likely to harm your reputation business. They are likely to scare potential customers, hence hurting your business. That is why you need to check if the collector uses the best practices in the market. A good collector agent adopts the best practices by following the governing regulations in the industry. Work with an agency that has a reputation for using the best techniques and strategies in recovering debts.
Fees
Last but not least is the issue of costs. Fees vary greatly from one collector agency to the other depending on their reputation and success rate. But we recommend debt collection agencies who offer a ‘no collection, no commission’ service. That means you get to pay when the debt is recovered. In addition, a reputable and high rated agency is likely to charge a higher percentage, but value for money is a guarantee. So, don’t go for a cheap collector because they are likely to be unreliable.
Collecting debt from a customer who is not will to pay is very difficult, and that is where debt collectors come in. However, hire a good and reliable collector to recover your debt if you want to get value for money. With the above six tips, you will be able to find a perfect collector agency for your business.
