Four tips to help source a great collection agency

Chasing up late payments and debts can be a time consuming and stressful process. Often you may decide it's not in your best interest to chase it up by yourself and may enlist the help of a collection agency to help out. However, it's important you chose your collection agency carefully as the wrong agency can have limited success trying to secure the money you are owed.

So how do you find a collection agency that will look after your best interests?

We've found four tips from All Business that can help your decision and ensure you have the best chance of getting the money you are owed.

Find one that specialises in your industry

Like business, many collection agencies will be more successful in particular industries. It may be that they have had more experience in that industry or it could be they have someone with previous experience in that particular field. The best approach is to call the agency and specifically ask them about their experiences in your industry and the average recovery rate for previous clients they have worked with.

Get a personal reference

Whilst it's good to hear directly from the agency on their experiences, the best references will usually come from other people you know that have had their own experiences dealing with collection agencies.

Generally speaking the best references will come from people you directly know, but it's also a good idea to try calling other business that operate within your industry to get their opinion. The more confirmation you have of their expertise, the better chance you have of getting your money back.

Alternatively, if you find an agency you really like but are still a little unsure, ask them for some references to be certain your making the right decision.

Understand how they communicate with business owners

This will give you a good indication of how the agency operates. Some agencies will try to collect the whole debt before notifying you, and others will give you updates more frequently.

The main thing is that you understand how much information an agency will communicate to you and try to decide on what suits you better. Sending your overdue account to a collection agency can be stressful, that's why it's generally better to choose an agency that will keep you updated on the progress of the collection.

Understand how they communicate with your customers

It's good to have an understanding of the processes your agency is going to use when following up the money you are owed. Although the collection agency won't exclusively discuss the specifics of their collection strategy, they should give you enough information to help you make an informed decision.

The most important thing to remember is that each collection situation is different and when deciding on an agency you should try to find a strategy that will benefit your personal situation.

Click here for more information about how a collection agency can help you. Or, if you want to chase payment yourself have a look at the four stages of debt.

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