If you are planning to hire a collection agency to take care of your past due accounts, you need to set your own standards to help you decide on the right collection agency. A reputable collection agency can make it easier for you to maintain a good relationship with that agency. Here are a few recommendations:
How To Decide on One Agency
Most creditors will look for two or three agencies to handle the collection of overdue accounts. Hiring more than one collection agency will encourage competition among them. You can compare their performance based on their methods and actual collections received from debtors. From this point on, you have the option to decide on keeping only one collection agency to handle all the accounts.
How to Compare Agencies
Start your search by finding a list of reliable and trusted collection agencies. You need to choose licensed collection agencies as an assurance of their credibility and performance. Visit their offices and inquire about collection fees and handling accounts.
Check how collection agencies communicate with debtors. If the debtors are your customers, you would not want to offend them by sending a very aggressive agency to collect money. There are less annoying but persuasive methods such as letters and phone calls. As a business owner, you want your customers to do business with you again instead of running in fear when they see you. Ask for a referral from other creditors you know. They might be able to help you look for a reputable collection agency and save time calling each agency.
Execute A Written Agreement
You will know a good collection agency when you get results within a reasonable amount of time. Maintain a good relationship with your chosen collection agency by laying down all your expectations from the start. This will give collection agents an idea on how your accounts should be handled and the expected time frame. Execute a written agreement of terms and conditions. The agreement contains the fees to be paid to the agency, procedures, status reporting and collection or payments report. This document must be signed by both parties for compliance. The collection agency will have to honor the stipulations of that agreement.
Keep Communication Lines Open
Provide all the necessary information they need regarding customer accounts. Keep communication lines open once the collection agency begins working on your accounts. Agents may want to know additional details about the accounts. Do not hesitate to ask questions or make clarifications. A good working relationship is based on trust and honesty. If you want to change the collection procedures for a particular customer account, you need to let the agency know right away. Instead of talking over the phone, ask for updates and status reports in person. This will make your relationship with the collection agency personal.
The Cash Protection Agency specialises in debt collection and we would be happy to help you with yours, please feel free to call us on 0800 433 4113.