How To Choose a Collection Agency
Are you tired of working with non-communicative collection agencies that don’t prioritize your case? If so, keep reading to learn about choosing a collection agency that suits your needs and how that can benefit your business.
How Do I Find a Good Collection Agency?
If you have outstanding accounts, you’ve probably asked yourself this question. It can seem difficult to answer when you don’t know what to look for. What should you look for when hiring a collection agency? Let’s break it down.
Collecting debt can be incredibly stressful, time-consuming, and can take away from your daily operations. Collection agencies exist to take the burden of contacting your delinquent accounts off your shoulders, so you can continue focusing on the success of your business.
A good debt collection partner should do the following:
- Maintain positive relationships with your customers
- Avoid threatening tactics
- Represent your brand or business well
- Leave the door open for both parties to work together again in the future
Choosing a Collection Agency That Suits Your Needs
When choosing your collection agency, keep the following criteria in mind to make sure the company is successful at what they do and suits your needs:
High Return on Investment
ROI is essential when choosing a debt collection partner. If an agency charges an initial low percentage, that doesn’t mean they’re making you more money. They may only take on small, easily collectible debts, or they don’t collect debts in full.
When choosing your collection agency, request access to an industry analysis so you can compare results and ROI of different collection agencies.
Supportive Services
If your collection partner’s only service is debt collection, they’re likely not well-versed in their industry. While debt collection is the primary service of a collection agency, many collectors offer supportive services that go beyond the initial collection.
These services include:
- Accounts receivable support: By offering AR support, your collection partner gives you the tools you need to avoid delinquent accounts. Many other agencies have one goal: collecting money. They don’t offer solutions that help you avoid needing debt collection because they want you to need their services. Offering AR service support shows that your collection partner cares about what happens to your business after your transaction is complete.
- Legal support: While legal support services aren’t necessary for all debt collection cases, it’s important to have them available to you, just in case. Some collection agencies hire legal teams to support you if your case ends in court. If an agency doesn’t provide this type of support, they aren’t prepared for every possibility.
Dependable, High-Quality Customer Service
Your debt collector should provide consistent and dedicated customer service. Many collectors pass your case around like a call center would and you never have a dedicated point of contact. This makes results unlikely because no one is committed to your success. Instead, multiple collectors attempt to collect your debt and fail, so they pass it on to the next person.
Another important aspect of customer service is accessibility. Are you having trouble reaching your collector? Does your collector send you to voicemail when you ask for updates? If so, it’s time to go somewhere else. Look for a collection agency that offers 24/7 connectivity with your case’s agent, so you always have access to case updates.
You deserve a collector that values your success and focuses on your experience. Always read agency reviews before closing a deal. That leads us to our next requirement—a positive reputation.
Well-Respected/Positive Reputation
Reviews and previous customers’ experiences indicate a collection agency’s capabilities, customer service, and success rate. If a collection company is recommended to you multiple times and you’ve read positive reviews, they’re likely a good partner for you.
Looking for a debt collection partner with a positive reputation and excellent customer service?
Produces Results
Success rates are crucial when choosing a collection agency to work with because they mirror a partner’s results. If their clients aren’t receiving their desired results, whether that be a settlement, partial debt collection, a payment plan, or full payment, there’s a reason—either the agency isn’t avidly working to reach a solution or they’re incapable of doing so.
Always choose a collection agency that leaves customers satisfied and produces consistent results.
Effective Reporting and Communication Strategies
When choosing a collection agency, make sure it has effective reporting and communication strategies. How often can you get updates on your case? Does your collector regularly communicate with you? How do they communicate with you? Do they provide regular report collection rates and monthly statements?
Your collector should do all of the above because you deserve access to your results and reports whenever you want. Many collection companies offer virtual portals to view your case information at any time.
Do You Want a Debt Collector That Cares About Your Success?
We’re assuming your answer is “yes.” Partner with Rapid Collections, an industry leader in debt collection that handles over $600 million in collections every year and has a 95% success rate.
At Rapid Collections, we value the success of your business and find the solution that suits your needs. We offer:
- Supportive services, including AR shared services and consulting
- Legal representation when necessary
- 24/7 access to collections software
We help improve the overall efficiency of your AR department so you can avoid working with delinquent accounts in the future. We communicate with your clients professionally and always represent your business well so you can maintain a positive relationship with your customers. If you want a collector that cares or need a small business debt collection agency, contact Rapid Collections today.
