“All agencies are not created equal”Just like any other business, you have to find the right fit for you. Here are 5 tips when searching for the perfect collection agency.
Make sure they are insuredThis is to protect you should an agency be aggressive in their collection techniques. This is most often called “Errors and Omissions Insurance” and is held by good debt collection agencies as protection.
Know their areas of expertiseEvery agency has the industries they specialize in. Does their specialty fit your needs? Do they know your industry? You want them to be able to speak as your voice.
Do they use “Skip Tracing”This is extremely important if someone “Skips” town. This is the software they use to find those that have moved or can’t be reached. Remember they can’t collect if they can’t find them.
What is their BBB ratingThis gives you a pretty good idea of how they take care of their customers (You) and how they will take care of YOUR customers. You never want to burn bridges as many times customers just end up not paying because of hardships.
Compare the CostFind out how they charge.
- Flat Fee: this is an upfront fee for each collection whether they collect or not
- Contingency: You pay nothing unless they collect. Typically at 25% – 45% fee