Chasing your debtors continuously, only to get vague response or no response at all can be really frustrating. It is not a very rare scene when entrepreneurs finally give up on a few accounts after religiously following up for the initial few weeks and still not getting any results. This is when commercial collection agents come into the scene. They know the exact methodologies and use the latest range of software in order to get the dues back.
But then, you have to be really careful while hiring collection agency service as there are various fraudulent agencies out there. Hiring an inefficient team can hamper your business to a huge extent and you might regret a lot. Wondering, what kinds of regrets am I talking about? Then, give this blog a good read.
- Legal Issues – The first issue of not hiring a legitimate company is that, you might end up facing legal issues. Hence, it is very important that you check if the company is well-aware of the industry, and adheres to all the federal, state and international conventions or not. You can either check all this information on their official website, or simply ask their agents about the same.
- International Accounts – If you end up hiring a company that is not experienced in handling international accounts, you might regret later. Wondering why, because you don’t really handle international clients? Well, what if your clients leave the country without leaving any kind of information? If an agency deals with international accounts, they possess the license of operating in all the other continents, so that your debtor cannot escape by any means. Also, they can use the “skip tracing” method, which is used to access the database that would help them trace the debtor.
- Customer Relationship – While most of the company adheres to the general rules and regulations, there are many that do not, and use extremely strict methods in order to collect the dues. This can harm your business in more ways than one. Take a look.
- General goodwill – It might hamper the general reputation of your company if the agency uses upfront and extremely strict methods while dealing with your customers.
- Lawsuit – Many customers have a tendency to file lawsuits, on the grounds of violating consumer rights. This can harm your business to a huge extent. And, which owner would want his/her company to get involved in legal cases, right?
- Future Business Prospects – It is very common that a company wishes to continue the business with a consumer, even after he or she has been proved to be a default payer. If this is the case and your agency deals too strictly with that individual or company then, the future business prospects with them might be ruined. So, don’t hire a company that uses such measure to collect the dues, so that you don’t have to regret later.
- Insurance – Insurance is imperative when it comes to choosing the right business debt collection agency. Insurance can save you if the debtor sues the agency because of inappropriate or threatening communication. So, you might regret if you hire the one that does not have insurance.
- Payment – Hiring a fraudulent company might cost you a lot. They might charge you a lump sum amount even before starting the work, and eventually, couldn’t recover any account at all. If you ask me, then I would suggest you to always hire a company that accepts payment on a contingency This way you wouldn’t need to pay until and unless your dues are recovered. Once recovered, the concerned agency would just charge a particular percentage of the total amount recovered.
So, these should be your major concerns while hiring collection agency services so that, you do not end up hiring a fraudulent company. Apart from all these, also check their credentials, customer reviews and the qualities of the agents. Make sure that they are well trained and knowledgeable so that, you do not have to suffer later on. Now that you know all the points, why delay any further? Simply start your search and handle this responsibility to a reliable third party agency.