Businesses do their best to recover owed debts, but some cases simply are too difficult to handle alongside regular business operations. Your time and money are important, and debt collection often consumes both. Hiring a qualified debt collection agency can reduce the strain on your business and recover funds once and for all, freeing up employees and departments to focus on other important projects.
Consider Your Needs
Is your business a small home-based operation, a small to mid-sized firm or a large company? Are your cases very difficult, or are you simply looking for a helping hand? Look into various companies and see if their services match what you are looking for. If you’re trying to track down funds owed by a large business, for example, a company that only specializes in small claims probably won’t fit the bill.
You’ll also want to ensure the debt collection agency is well-equipped to successfully collect your money. One service offered is known as “skip tracing”, and it helps track down debtors who have left the area with little or no trace. These cases are very difficult for businesses to handle on their own, but debt collection agencies are professionals equipped with special tools and methods to get the job done.
In addition to what the company offers, you will also want to ensure the debt collection agency of your choice is properly licensed and follows legal regulations and rules. You definitely don’t want to hire a company that uses unfair practices to collect debts, as such behavior can tarnish the reputation of your business as well. You will also want to be sure the collection agency has insurance to protect against cases where debtors sue. Obtain proof of insurance right away to protect yourself from liability if the collection agency uses inappropriate practices.
“A collection agency should make an effort to provide you with the information you need for successful collections. A company that keeps you in the dark should be avoided,” says John Monderine, president of Rapid Recovery Solution. Rapid Recovery offers free quotes and regular articles with collection tips, showcasing their transparency and skill before businesses even contact them. More information generally does lead to better results, and it is something to watch for in your research.
Consider Costs and Guarantees
How much does each agency charge, and is there any guarantee or time limit? The last thing you need is a shady debt collection agency wasting your time and money with a never-ending case. It’s best to hire a collection agency that adheres to clear guarantees. Most agencies won’t charge you a fee unless the money is recovered. Of the recovered amount, agencies generally take a cut depending on how difficult the case was. Remember, receiving some of the money you are owed is better than not receiving any of it. Hiring an agency early will generally be cheaper, but do be sure you’ve gone through all reasonable options before hiring one. An experienced agency like Rapid Recovery will be able to provide quick recovery of funds at a rate that works for your business.