When it comes to running a small business probably the most frustrating aspect is chasing after customers, clients or vendors for payment.
Unfortunately it does happen.
So what should you do when the unpaid invoices start stacking up and your own internal efforts to collect aren’t paying off?
It’s probably time to get some professional help.
The question is… how do you know when you’ve found the right agency?
Small business collections simplified
Okay, so you decided to hire a professional. That’s the first step. The next question is, how do you know which company to choose?
When you need to get a collection agency for your business a good rule of thumb is to follow three simple rules..
- Ask questions
- Hire a specialist
- Choose experience
What sort of questions should you ask?
In no particular order you’ll want to make sure they are licensed to do business in your state as well as the states where your customers or clients reside. You want to make sure that you collection efforts are compliant with all state and federal collection laws (which, by the way, is a great reason to outsource your collection efforts).
So start with licensing questions.
Next, you’ll want to mention who many outstanding accounts you have and the total outstanding balance.
This is important information to share up front since some agencies only work with larger companies or with companies that have a certain total dollar amount outstanding. So finding the right agency for your small business will often come down to finding an agency to work with your situation.
Also, ask them when they should get involved in the collections process.
Hire a specialist
Next, you’ll want to make sure you choose an agency with a track record of success in your niche or specialty.
Some agencies do specialize in working with certain types of clients such as dental offices, medical practices, or companies whose clients are other businesses (i.e. B2B collections).
Additionally, you’ll want to ask…
- if they have they worked with other businesses like yours recently?
- if so, what was their success rate in collecting some, or all, of the outstanding revenue?
If possible ask for testimonials or case studies related to their working with other companies or industries in your niche.
Make sure they understand the specific needs of your business.
When it comes to experience you’ll want to ask how long they have been in the collections business, especially since there are many “fly by night” agencies springing up all the time.
Furthermore, you’ll want to ask if they focus on collecting debt in your state or regional area, or are they focused on national (or international) collections.
After all, experience and expertise go hand-in-hand.
Finally, you’ll also want to get a clear understanding of how the collection agency will be paid for their services. Most will charge you a percentage based on the revenues they are able to collect on your behalf.
By following these simple tips you should be able to recover a significant amount of your outstanding revenue.
Find the right collection agency
To find a collection agency that specializes in helping businesses like yours, simply request a free services quote from qualified and reputable companies.
Click the link and compare free collection agency quotes today.
This way you can save time, money and aggravation by hiring a professional who can help you collect some (or all?) of your outstanding accounts receivable.
After all, when you get down to it you really have two choices:
- you can keep doing what you’re doing (and hope for a different result), or
- you can find a collection agency that can help you recover what’s rightfully yours.
Either way it’s your money… you decide.