1. Does the agency have insurance?
You don’t want your company to take the fall if the debt collector does something wrong. For this reason, it is important that the debt collector is properly insured. It covers them in case a staff member violates any laws or regulations, leaving you out of it.
2. How much does the debt collector charge?
You can’t even think about hiring a debt collection agency without knowing up front what they charge for their services. Most companies will charge a contingency fee. This fee is basically a certain percentage of the total amount they have recovered for your company. The fee is undoubtedly higher for older collection accounts.
3. What makes up their client base?
You want to deal with a collection agency that has had success dealing with businesses like yours. This way, you can ensure they know what they’re doing. Don’t forget to ask for references and a current list of clients.
4. Do they offer progress reports?
You ultimately want to know how much money the debt collector collects on a monthly basis. Some companies will only send you an invoice at the end of the month. However, more up-to-date collection agencies give you online access to reports, which allows you to constantly monitor their progress.
5. How will the company treat your customers?
You don’t want to lose customers; you just want them to pay your company what they owe. Does the company act professionally when speaking to customers? Most importantly, do you have a say in what they tell your customers?
6. Does the company have up-to-date technology?
You need to deal with a company that will allow you to have a working relationship with them for years to come. This usually means they also need to invest in modern technology. Companies that think highly of technology are clearly thinking ahead to the future, making them an ideal company to work with.
7. Is there anything special about this company?
All collection agencies have similar methods of collecting money, but you want a company that goes above and beyond your expectations. Does the company offer convenient progress reports? Do they have a great track record? You want a company that will be essentially a partner to your business and not just think about the bottom line.
When you look to hire a professional debt collector, it is important that you feel at ease with the company. You need to work together and most importantly, you want to get paid. Find a company that not only does everything described in the article, but goes above and beyond to cater to your needs.