The best collection agency for your business? A great collection partner maximizes the amount of debt collected and maintains a professional relationship with your clients.
Think big picture, not just initial price
The collection percentage charged by an agency is just one factor to consider when deciding which partner to choose. Initially it is easy to compare agencies based solely on that percentage, but really the most important factor is how much money is being recovered. There are some agencies who charge to place accounts and some that charge based on what is collected. For other agencies offering a low percentage incentives work on easy to collect debt and may mean that other debt is ignored. You have been tasked with selecting an agency for your office. Agency A charges 12% of money collected and Agency B charges 40%, seems like a straightforward decision, right? Here is a perfect example of why it is important to look at more than just the percentage charged to do your collections:
|Agency A||Agency B|
|Returned to Office||$3080|
Even though Agency A charges a much lower fee rate, Agency B would still be a better choice because the cash return to the company is higher. Reputable agencies will provide you with current client references and performance information they have achieved for businesses just like yours. While collection success will vary from client to client, it will certainly give you clear picture of who is effective and who is not. That knowledge can help you make the best decision based on real returns and not perceived expenses.
Customer Service is key
Avoid bill collectors threatening to break down the front doors of delinquent debtors. Whomever you choose as an agency partner should maintain the relationship with your customers. Top modern agencies focus on making it easier for clients to pay through multiple channels, payment plans, and early intervention. Look for a partner that can help you supplement your in-house process with payment notices early in the life cycle of a debt.
Part of outstanding customer service means ensuring that all calls are made from a domestic collection office. Outsourcing is common in most businesses, but the collection industry is different due to the sensitive nature of the relationship between your business and your clients. Domestic call centers pay dividends in both collection results and customer satisfaction. Partnering with a local/regional agency will drastically improve your chances of collection and eliminates the risk of consumer complaints.
Find agency partners, not just collectors
Business consultants work with companies to create better sales results, your collection agency partner should work with you to create an effective system for managing your accounts receivables to increase your bottom line. Collection Agencies are the experts in debt recovery and should work with you to improve your in-house collection efforts. This includes professional development for you and your team, webinars or just answering questions you have a long the way.