Collection Agency Services Allow Businesses to Focus on Business
Even the best accounts receivable departments can fall short when their duties as a bill collector extend into dealing with very difficult or missing debtors. As a business, you are concerned about your bottom line. The reality of the situation is that it costs you time and money to operate your business. The more time and effort that needs to be put into debt collection, the more money you have to pay out of pocket.
For delinquent cases, hiring a collection agency can save your business money and allow your account receivables department to return to more important tasks. The skilled debt collectors at a professional collections agency can handle your bad debt collection cases and help you get paid. Commercial collection agencies often just take a percentage of recovered funds, meaning the service doesn’t cost you anything and nets you some money that you may have not had without collection company assistance.
That said, it important to choose your collection agency wisely. Here are some factors to consider when hiring a collection agency.
- Experience: You want to select a collection agency that is equipped to meet your needs. For example, if your business is involved with medical billing, it is best to choose a company experienced in that type of collection. Most experienced companies with good track records are equipped to meet the needs of various industries, but you should always ask about a specific company’s capabilities.
- Skiptracing: If you have a missing debtor, you will require skiptracing services. Make sure you ask the collection agency about the methods they use to locate missing debtors if this applies to you.
- Coverage Area: Notify your collection agency of your debtor’s location and ask how they handle debt collection across states. An ideal collection service will be fully licensed and equipped to work in many locales.
- References: Explore the collection agency’s references and ask your business contacts if they can recommend collection services to you.
- Insurance: Consider obtaining insurance to protect the collection agency and yourself against volatile debtors.
- Tactics: Ask the collection agency about the phone calls, letters, and other methods used to pursue debtors. Ensure the company you choose uses tactics that align with your comfort level and goals. Ask when credit collection bureaus or legal action come into play as well.
Obtain a free quote and learn more about collection agencies in order to hire the best one for your business. The most reliable collection agencies will offer guarantees on their service and take only a reasonable percentage of recovered funds.