How to Choose the Right Commercial Debt Collection Agency

How to Choose the Right Commercial Debt Collection Agency
  • Opening Intro -

    Commercial debt refers to the debt owed to a business.

    In case your company or business has debtors, it's better to let professionals handle the debt collection, instead of doing it yourself.

-------------------------------------

This can give you more time to focus on other important aspects of your business. These tips can help you choose the right commercial debt collection agency:

1. Ask For Referrals

Asking the people you trust – your business associates, attorney, family members or accountant – for referrals is a good starting point when you are searching for the right commercial debt collection agency for your business. Make sure you go beyond asking for a list of agency names. Try to find out why people are recommending a certain agency to you. Does it adhere strictly to laws? What debt percentage have they collected successfully? What technologies and systems do they use in their collection efforts?

It is worth visiting a collection agency by yourself to know the answers to these questions and much more before you make any commitment. If a company doesn’t fit what you’re looking for, move on.

2. Ensure That The Agency Is Licensed

It’s very important that you make sure the collection agency you’re about to hire is licensed. If you choose a company that isn’t licensed, you may be held responsible if it violates any collection laws. Ensure that it’s licensed in all states to enable the agency to be able to collect from your debtor even if he or she relocates to another state.

view our business center for key business tips

3. Ensure That The Agency Is Insured And Bonded

It’s also vital that the commercial debt collection agency is insured to protect you in case something unexpected happens during the collection process. It’s equally important that the company is bonded in case of a lawsuit; make sure that it has the resources to enable it handle a lawsuit without jeopardizing your business.

4. Ask For A Fee Structure

Various companies have different charges. Some will ask you to pay a flat fee up front, while others will wait till they collect your debt, then take a percentage of it. You should go for the first option if the debt to be collected is huge, or if there are more than one debtor to collect from. On the other hand, if you don’t have the required upfront fee, the second option may be your only choice.

5. Find Out If The Agency Provides Debt Portfolio Screening

Go for commercial debt collectors that offer debt portfolio screening. The tool not only allows the collector to monitor your debt using a scoring software but also helps to forecast the debt accounts that have a high likelihood of paying.

6. Find Out If The Agency Permits Customers To View Their Accounts Online

Even though a commercial debtor will handle everything concerning your debt, it’s equally important that you keep an eye on it as well, to enable you to monitor your debtors and account.

Share this article on all social media platforms.

Sources

Choosing The Right Debt Collection Agency

http://www.businessnewsdaily.com/7811-choosing-a-collection-agency.html

https://www.rocketlawyer.com/article/five-tips-for-hiring-a-debt-recovery-or-debt-collection-agency.rl

https://www.linkedin.com/pulse/20141205145134-38097237-how-to-choose-a-commercial-debt-collection-agency

Money Management reference:

managing your debt tips

-------------------------------------------------------------------------------------------------------------

end of post idea

-------------------------------------------------------------------------------------------------------------

Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

Categories: Business Services

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload CAPTCHA.