We’ve talked before about when it’s time to bring in the experts to help manage your delinquent receivables. But with dozens of agencies vying for your attention, how do you know which one is right for your business?
Here are a few aspects to consider:
What kind of debtors do you have?
The most basic distinction here is between commercial and consumer. If your debtors are individual consumers, your agency needs to be well versed in navigating the complicated extra layers of regulation. If your debtors are businesses, you need experienced negotiators who understand how to reach an outcome that works for everyone!
Are the accounts months or even years past due and actively dodging you, or do they just need the right plan to get them back on track as valued customers?
Are your customers large corporations where your calls are picked up by a different bored associate in accounts payable every time, or inexperienced entrepreneurs still learning how to manage a business?
Does the prospective agency understand your business – be it insurance, auto parts, or medical services – so they can discuss your debtors’ accounts from a knowledgeable position?
Do you need negotiators fluent in the languages and business practices of your international customers?
What supplemental services do you need?
Maybe your debtors are in constant motion, and you need an agency with in-house skip tracing to arm their collectors with valid contact information right away. Or maybe your corporate policy requires delinquent accounts to be reported to credit agencies.
Maybe your in-house team needs to check the notes on the agency’s file in real time, or your customer base prefers to pay online.
Does the prospective agency have the technology and programs in place to meet your particular needs?
How do you want to communicate?
Some creditors like to stay on top of developments day-to-day; others prefer their data organized into weekly or monthly reports.
Whether you favor real-time conversations, email, or smoke signals, your agency should be prepared to keep the lines of communication open and their processes transparent in a way that fits your business.
What about quality and integrity?
In a business world that seems to be changing faster every day, it’s more important than ever for your collection agency to keep up with regulatory compliance and best practices. A reputable agency should be able to provide references from current clients and valid licenses or permits for any jurisdiction your debtors are located in. Ask about their continuing education for their team, and make sure they’re certified by a leading industry association like Commercial Collection Agencies of America.
Choosing the right third-party collection agency can have a dramatic effect on your bottom line. Make sure your agency understands and is ready to meet the needs of your business.
To learn more about how Brennan & Clark can meet your business’ needs, contact us at firstname.lastname@example.org or (800) 858-7600.