Running a business involves ensuring you receive the revenue you need. The problem is, you can’t always trust your customers to pay you the money they owe. As a business owner, you have a business schedule.
Chances are, your employees have equally busy schedules as they try to perform their jobs. So, how can you get the money your customers owe? One way is to hire collection agencies.
Finding the best collection agency partner is a reliable way to get the money your business needs. With effective collection agents, you can get paid faster and increased legal protection.
When researching collection agencies, you’ll likely see there isn’t a standard cost for these companies. The reason for this is that collection agencies take a percentage of the debt they collect. Different agencies receive smaller or larger portions of your debt collection.
If you have concerns about your budget, you may follow the temptation to hire an agency based on the percentage they charge. However, this isn’t a complete analysis.
Several financial factors affect the hiring process for collection agencies. One of those factors is the amount of money they place in your company coffers. Even if a company charges a large percentage, this incentivizes them to collect more money on your behalf.
Alternatively, a low rate company that doesn’t collect a sizeable percentage gives less money than your agency. So, compare the collection percentages of businesses, rather than focusing on the rate they charge. This latter factor determines the ROI you can earn.
It is also important to work with a collection agency that recognizes that consumer needs and wants change rapidly and are constantly evolving. The technology an agency uses is another important aspect to consider. You want a company that utilizes advanced technologies and will implement new technologies to help better support their clients and generate results.
At Credit Management Company, we continue to find innovative technologies that will help better support our clients. This includes skip tracing, payment scoring, online payment portals, and remote client access. Furthermore, CMC is in the process of implementing a new technology that will soon provide virtual call agent technology.
Visit our website to learn more about the technology used at Credit Management Company.
When you hire a company, you want partners who do more than acquire the money you need. Instead, you want a company committed to a partnership with your brand.
To that end, look for agencies that offer training or compliance support to their clients. Agencies that educate their hiring companies help them understand the best ways to collect money and handle rogue accounts.
Once again, an agency with experience in your industry proves helpful here. An agency that understands your industry can help you navigate regulations specific to your field. Since these regulations may affect how you can make collections, this is essential information.
When you search for a company, ask if they allow access to audits and reviews of their account activity. Always remember that this agency works with you to collect your money. If you want to see how those efforts bear out, the company should allow you access to that information.
As such, companies should be transparent about their tactics for contacting debtors as well. Likewise, ask if they’ll divulge collector notes, recordings of phone calls, or any other activities in your accounts.
Also, ensure the agency provides regular reports to your company. These reports should explain how well they’re meeting the goals of your business.
The best collection agency partner will review their primary performance indicators regularly with you. This way, you can determine if they assist your organization in a satisfactory way.
If you’re interested in finding the best collection agency partner, using these tips can help you do it. With these qualifications, you can find more than a collector. Instead, you can find a long-term partner to help your business grow.
If you need a debt collection service, check out our services! We provide our clients with quality debt recovery, as well as tips for helping consumers.
Check out Part 1 and Part 2 of this series to see more helpful steps!