When it comes to unpaid debts, hiring the best collection agency can save businesses money. However, it is essential that companies carefully select their agencies to ensure they are licensed, experienced and will represent their business well. It is also important to check if the agency has been cited by the Better Business Bureau and/or the Association of Credit and Collection Professionals.
How serious is debt collection?
Cost- Most reputable collection agencies charge on a contingency basis, meaning they get paid a percentage of the debt they recover for you. This fee can range anywhere from 20% to 50%. Some collection agencies have fixed pricing plans, so it is important to review their fees and services carefully.
Specialization- It is important to understand the industries that your potential collection agency specializes in. For example, a collection agency that focuses on B2B debt may not be the right fit for your consumer-facing business. It is also important to know how the agency treats their debtors because it can reflect on your company if they are rude or use aggressive tactics. Source : breyta.nl
Legal Assistance- Some collection agencies provide services that include legal action. This can be useful if a debtor does not respond to other efforts to collect payment.
Choose an agency that has a good track record and is easy to work with. Many agencies have an online portal that allows clients to add new accounts and track their progress in real time. Others offer credit reporting, billing and precollections services to simplify the process for their clients.