Done with hearing all kinds of excuses from the clients for their delayed payments? Tired of unreturned phone calls, e-mails and piled up invoices? Thinking of writing these amounts off as bad debts? Well, don’t. Don’t lose hope and instead, allocate this job to a reputed commercial collection agency. They know the right tactics and methodologies which will compel the clients to pay the due amount. |
But yes, you do need to research enough in order to find the best collection agency. There are hundreds out there, dealing with various scales of companies. But you need to choose the one which will best serve your purpose and is appropriate for your client base. Here, are some of the things you need to consider while choosing a commercial agency for your business house.
Integrity and standards maintained – There are many agencies that use over-aggressive methods in order to get the dues back from customers. But this can actually hamper the reputation of your company and can be detrimental to the goodwill of the company. Also, it can ruin the prospect of any future business with that client. So, you have to first find out the integrity and standards that are maintained by the company. Generally, a reputed commercial collection agency will use other kinds of methodologies like letters, e-mails, face to face discussions, etc and they will record every detail.
Contingency (Method of payment) – Secondly, keep in mind that the reputed companies charge based on the recovered money that is a fixed percentage of the total amount. Check if the company accepts payment on a contingency basis or not. You do not need to pay unless your accounts are recovered.
Insurance – The next thing which you need to check is if the agency is insured or not. It is always advisable that you opt for firms that are insured so that you do not face any kind of issues later. This will also ensure your peace of mind as you wouldn’t be liable for any kind of actions that are taken by your business collection agency. So, get proof of the fact that they have insurance and verify everything in details in the very beginning.
License – Always make sure that the firm you have chosen holds a license.
Apart from these four, you also have to check their experience. And that experience should be relevant. It is always recommended to go for firms that have experience in handling similar kind of customer base. Plus, if you have a startup business or own a Fortune 500 one, ask the agents if they have handled similar scale of companies whose turnover matches yours.
Next, hiring a firm which takes up old accounts shows their confidence in work. There are many agencies that would refuse to take up any old account. Skip that company and move on to the next. Another thing which is advised is that consult an agency which deals with both domestic and international accounts because they will be more experienced and versatile in that case. So, don’t delay and hire a reputed one at the earliest.
Author Bio: Nelson Cooper, a law intern and regular blogger on commercial collection agency, writes about the things to consider for hiring a reputed business collection agency. Choose the best collection agency for your company.
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