As a business, you will have or already have unpaid invoices, whether they were for a service or a product. Recovering amounts owed can be a long and bumpy road for your business, unless you hire a collection agency to handle everything for you, including keeping you legal. So what should you look for in a collection agency? Here are some details.
Avoid Headaches and Wasted Valuable Time
Hiring a debt collection agency is perhaps the best decision you can make when it comes to collecting on old debts. You have other important business tasks to handle and doing the collecting yourself can consume a lot of your important time, as well as take away your focus from more other business-related things. In fact, it could become a royal headache as you find yourself rummaging around to find documents and checking legal laws, and even getting organized.
One Size Fits All Does Not Apply
Every debt collection agency is different and some may have the offered services you need while others may not be tailored to your situation. Some may send out collection letters and make a couple phone calls and call that collection services. Others may add other features, such as handling court processes, locating debtors, making payment offers, and more. Some debt collection agecies will provide you full services inclusing legal process. They will communicate with both party and try to make an acceptable ending. That is just a couple examples, but there are many other services to consider.
Types of Debt They Handle
Debt collectors focus on specific types of debt, which means that you need one who can handle your bad debts. For instance, some focus solely on medical bills and credit cards, while others add auto loans, personal loans, mortgages, lines of credit, etc.
Their Client Database
An important thing to consider when looking at hiring a debt collector is the type of clients they retain. Some collection agencies work with big corporations while others handle small business clients. Some handle both or are better with one or the other. Some work with franchises while others work with companies that provide services like home improvement companies and landscaping businesses. When prospecting for a debt collection agency, be sure to ask what type of clients businesses they serve. You wouldn’t go to a landscaper for new flooring in the house and you wouldn’t hire a doctor to provide dental procedures. It’s the same concept with debt collectors.