How to Choose the Best Collection Agency

Just about every business experiences the need to collect on past due accounts.

And if you been running your business for some time, you already know exactly what I’m talking about.

When it comes to debt collection it’s better to use a professional company then to rely on your own efforts.

If you’ve had to handle collections internally, whether by yourself or by using your staff people to contact your customers, clients, or patients then you know what a hassle it can be.

Not to mention a drain on your resources.

After all, isn’t your time is better spent handling the day-to-day activities of your business?

How to choose the right collection agency

Here are three things to look for when looking to hire a collection agency…

1. Licensed companies only
2. Bonded and insured
3. Experience in your industry

Make sure they’re licensed.

It is critical that you only consider working with a license collection agency. For starters, you want to make sure you will not be held personally responsible should they violate any collections laws.

Additionally, you’ll want to make sure they’re licensed not only in your state but nationally as well.

Make sure they are bonded and insured.

Along with being licensed, you’ll want to make sure that the collection agency is both bonded and insured. This way should the collection agency ever be charged with a lawsuit while collecting on your behalf you’ll know they have the financial resources to deal with the situation.

Additionally, it is vitally important that you get a hold harmless agreement set in writing.

This will protect you and your business from any legal liabilities that may arise from the collection agency attempting to collect on your behalf.

Finally, you may want to consider working with the collection agency that has experience in your particular industry.

For example, you may want to know their track record for collecting on the types of accounts similar to yours. They should be able to show you case studies of successful collections and testimonials of business owners who were in a similar situation as yourself.

Next, consider their business philosophy.

This involves getting a sense of the manner and method they use to collect your past due accounts. You should only work with a collection agency that is aggressive in helping you get paid while staying within the framework of the law.

And lastly, you’ll want to ask about their fee structure.

These days many collection agencies will only charge you a fee based on their ability to collect on your behalf. The last thing you want to end up with when hiring a collection agency is any unnecessary surprises.