When to Call a Collection Agency

Have you tried everything you can to get a customer to pay, from phone calls to letters to offers to accept partial payment, to still receive no payment? If so, it's time to turn this problem account over to a collection agency.

A good debt collector is a professional who can use his/her extensive knowledge and experience with collection techniques and compliance issues to resolve your payment issues. Debt collectors are experts, so they have a much greater chance of retrieving your payment, while saving you time and effort in the process.

Why Should You Call a Debt Collection Agency?

What to Consider When Choosing a Collection Agency

• The overall success rate is more important than the amount of money the agency collects.

• If an agency collects a larger percentage of the total past-due accounts, then your business will receive more money.

Overall Success Rate

Industry Focus • Choose a debt collector who specializes in your type of

business.

• They have a better understanding of your industry and may have a higher success rate at pursuing those kinds of debts.

Two-way Communication

• Two-way communication is necessary before, during and after the collection process is complete.

• Ask your collector how detailed the reporting is for the collection results, as well as how you will receive your payment when it's collected.

Trial and Error

• Meet with several collection agencies and give them some delinquent accounts to see how they perform.

• Consider how they work with clients, the amount they collect, and how quickly the payment is remitted.

Observation

• Observe how the collection agency conducts its business.

• Ask to see a sample collection letter, so you know what they send to clients.

• If the agency's office is nearby, ask to visit them in person to observe how they perform their debt collection services.

• Make sure the collection agency is officially licensed and bonded by the state in which they work.

• Ensure the agency carries Errors and Omissions Liability insurance.

License and Bonding

For more information about hiring a debt collection agency, visit

www.creditfinancialservices.com.