The Best Collection Agencies
Unpaid invoices can wreak havoc for a business owner. According to a study by Plum and Sage, 11% of all invoices for small and medium companies are paid late, costing more than $1 trillion per year.
The time and manpower it takes to chase down these payments interferes with a normal business workday and often requires the help of outside resources, such as collection agencies. When working with the best collection agencies, business owners are able to collect outstanding debt and save time doing so.
Below is a rating of the best collection agencies based on their minimum requirements, transparency, fees, and other relevant factors.
One: Atradius Collections
Atradius Collections has been in business since 1925 and is one of the best collection agencies in the world. Located in the United Kingdom, the service belongs to numerous debt collection trade associations, such as the International Association of Commercial Collectors (IACC), the Federation of European Credit Management Associations, and the Credit Services Association.
Pros of using Atradius Collections:
- Free instant online quote
- No minimum debt amount
- Experienced with international companies
Atradius Collections claims a 79.3% global success rate. They handle more than 90,000 cases of commercial debt per year and work in 29 different countries. They offer a variety of comprehensive services, including amicable debt collections, worldwide legal collections, insolvency services against bankrupt debtors, and standby services.
Two: MCA Collection Agency
MCA Collection Agency, originally known as Medical-Commercial Audit, Inc, has been in business since 1950. They are members of the American Collectors Association and the Missouri Collectors Association, along with the Better Business Bureau, Fenton Chamber of Commerce and the NFIB. The company supports sound ethics with the staff by offering ongoing training programs.
Pros of using MCA Collection Agency:
- No cost unless they collect
- Rated A+ with the Better Business Bureau
- Offers friendly, personalized service
- Payments can be made on their website
MCA provides one-on-one service with each client and offers personalized service specific to each client. They don’t use auto-dialers or harass debtors. Because of their professional, friendly debt collection services, a high percentage of their business is from repeat customers and referrals. They are a family-owned business with staff members that have been with MCA for over 20 years.
Three: The Kaplan Group
Founded in 1991, The Kaplan Group is a commercial debt collector that works on B2B collection with a claim range from $20,000 to $1 million. They don’t require setup or membership fees, working on a contingency basis. The company is accredited by the IACC and the Better Business Bureau.
Pros of working with The Kaplan Group:
- Low fees on large debts
- No upfront costs or membership fees
- High success rate
The Kaplan Group offers a variety of services, including an in-house law firm, background investigation services, skip tracing, credit analysis, and settlement agreement with payment plans.
Four: Summit Account Resolution
With 20 years of experience, Summit Account Resolution falls into the category of one of the best collection agencies. They offer services across the country and focus on consumer collections, particularly in medical and dental offices. In some cases, you may end up paying additional fees, such as litigation costs, to obtain the outstanding debt. Summit Account Resolution is accredited by the Association of Credit and Collection Professionals (ACA) and the Better Business Bureau.
Pros for working with Summit Account Resolution:
- Online portal
- Monthly collection reports
- Experience in medical industries
Summit Account Resolution helps clients maintain their customer relationships by avoiding aggressive collection tactics. Account representatives monitor your debts and ensure you receive a detailed collections report to keep you informed of the process and progress.
Five: Rocket Receivables
Rocket Receivables, which is owned by TSI, is specifically designed for small business owners, catering to education, healthcare, residential, retail, and trade industries. The company is not accredited with the ACA, Better Business Bureau, or other organizations.
Pros for working with Rocket Receivables:
- No setup or membership fees
- Online portal
- Fixed fee or contingency fee for the actual collection activity
While Rocket Receivables isn’t accredited, it does offer a guarantee. Fixed-fee collections in their stage one process are eligible for the guarantee which states that you’ll double the money you pay for the service or you’ll get your money back.
What is the Difference Between a Debt Collection Agency and a Debt Collector
When taking into account the best collection agencies, we distinguished between agencies and collectors.
With a debt collection agency, you retain all ownership of the debt. The agency acts on your behalf to collect the outstanding money owed to you. A debt collector or debt buyer, however, buys the debt from you. You are paid up front and will no longer have access or control over the account. Any money collected from the debtor is paid to the debt collector.
Hiring a debt collection agency gives you the ability to maintain a professional relationship with the debtor while still collecting the money due. The best collection agencies avoid high-pressure tactics and perform their duties with a level of professionalism that most companies expect and prefer.
How to Choose the Best Collection Agency
When choosing which debt collection agencies to use, take into consideration the following factors:
- Fees and commission
- Debt minimums
- Success and recovery rates
- Customer service
- Litigation options
You’ll also want to take into consideration the agency’s cost structure. They may have fixed fees or charge contingency commissions. They may also have setup or introduction fees when opening an account with them. You may also need to be aware of other potential fees, such as those involved with litigation.
When determining the best collection agencies, it’s important to consider these factors along with the inclusion of additional features. Transparency of fees was a top consideration, but so was the ability to work well with clients to help maintain a professional working relationship with debtors.