Every business- big or small will eventually have a collection issue. Despite your best possible efforts, some customers will simply not pay. Some accounts will fall past due. And like rusted iron, they are just not going to budge. So in such cases, you reach out to a collection agency.
Choosing a reputable firm is important. But there’s much more than reputation to think about. Focusing on these selected areas will help you select the right collection agency.
The way your company handles the collection process and your customer reflects on your business. A reputation for unethical collection practices and unprofessional treatment is viral these days. You must ask whether they are bonded and licensed in the states your debtors reside.
Legal and financial reputation: Try to find out if there are any negative financial issues that may affect the ability of the agency to pay you your money. Check into their accounting practices. Be sure that your agency of the choice is reputable and trustworthy. Check to see if they have a P.O box or a physical address, Check CFPB complaint forums, BBB, see if they are members of a credible organization such as the ACA website https://www.acainternational.org RMA www.rmaintl.org.
Hire a firm to conduct an onsite inspection. I would recommend www.trendsource.com
You should expect your collection agency to offer online client portal access that helps you keep an eye on the status of your accounts. If you have thousands of accounts, you’ll definitely want to use an agency that provides easy access to your defaulted accounts.
The process of collection is almost the same across all industries. There is not a vast difference between collecting from an importer vs. collecting from a distributor. In some industries, however, special regulatory conditions exist. Therefore if your industry is governed by specific rules and regulations, find a collection partner with appropriate knowledge and experience.
The agency you select must specialize in collecting from the category of customers you serve. This way you’ll be able to use the expertise of your collection partners in the most effective manner.