Do you know how to select a good debt collection agency?
You are sick and tired of people who do not pay their invoices. You are completely irritated that people do not find the time or money to pay their invoices. When it comes to going and basically enjoying themselves, they are not so forgetful. Of all the challenges that you face on a daily basis, this is the one that does not let you sleep at night. The unpaid accounts cause your company to make late payments, both to employees and suppliers. Your fellow businesspeople are constantly praising debt collectors. Since there are many debt collectors in London, you thought you should give it a try. But do you know how to select a debt collection agency? Chances are that you do not, so use our advice.
Look into the debt collection agency’s past
Before committing to a business organisation, you have to look into their past. What does this mean, exactly? It means that you need to see for long the agency has been around. If they have years of experience recovering unpaid money, that is indeed an assurance. Experience is an asset that any business organization should have, no matter the size. Equally important is finding out if their customers are satisfied with their services. A debt collection agency can be in business for many years, but that experience counts for nothing if they have no clue about talking to people.
Ensure the debt collection agency has insurance
Some debt collectors are like vultures, in the sense that they are aggressive. They are rude and stop at nothing to pursue delinquent accounts. The fact is that there is no way of knowing from the beginning how reliable a collections agency is. Not all of them are like Legal Debt Collectors. It is not surprising thus that clients do not pick up the phone. They are terrified of what will happen. Debtors can sue if collectors are aggressive and you have problems too. This is the reason why it is a good idea to ensure that the agency has insurance. If they are covered, there is low likelihood that you will go to court.
Do not ignore industry specialisation
Debt collection is a universal practice, so the industry where it is applied does not matter. Well, not exactly. It would be great if you had someone that understands how product and service consumers function. Let us not forget about the specific legislation. When you are conducting your face-to-face interview, ask how much experience the agency has with your industry. If they lack experience, look for a firm with the right knowledge and competence.
Establish your debt collection needs
Clients do not rush to pay their invoices, that thing is for sure. However, debt collection services costs, which is the reason why you have to determine your needs. The age of the accounts is the most significant aspect. If 120 days have passed and you have not seen a dime, that is bad. Your finances are seriously affected. Get your calculator and establish the age and size of your delinquent accounts.