How important is choosing the right Debt Collection Agency?
How Important Is Choosing The Right Debt Collection Agency?
What is the true value of selecting the best-fit Debt Collection Agency for your Business? What value will it bring? – This article will hopefully provide food for thought.
A professional and proficient Debt Collection Company can be a real asset as a partner to any Business. It is natural to want the maximum collection of unpaid/overdue monies however as in life, you only get what you pay for. It is imperative you need to do your homework in order to ensure it is a worthwhile and profitable exercise. Oscar Wilde once said “A cynic knows the price of everything and the value of nothing”
There are a various number of factors to consider, it is a similar scenario to employing a new member of staff for instance as effectively you are looking to employ someone to work for your business as opposed to working in your business so the protocols of performing such a task should be done in very much the same vein to achieve the desired result.
It is a simple fact that choosing the wrong Debt Collection Agency can be far worse than choosing none at all! – Why? Let’s think about that for a minute…
Professionalism is the key factor that should rank higher than all others. Instructing a company to represent your interests should not be a decision taken lightly. They effectively will be an extension to you and/or business so you would expect professional conduct at all times.
Results are obviously the main objective of any collaboration but what are the defining factors that will maximise the amount recovered.
- Experience – Previous experience of similar debt recovery scenarios.
- Endeavour – A pragmatic and proactive approach
- Efficiency – Well organised and diligent
- Ethical – Conscientious and professional
- Effective – Authoritative and dynamic
- Established – Reputation and positive history.
The Cost and Fees of recovering debt can differ and vary quite greatly. Transparency is the key here so be absolutely sure what it is going to cost you from outset.
It is a simple fact that where it is largely a results-driven exercise the outcome will be far more favourable. Far more improved than a fee driven policy where there is no urgency to recover any monies, in fact, it is more lucrative to the fee earning entity for the matter to become protracted. Fee earning is a standard policy normally adopted by law firms however many Debt Collection Agencies have fee-earning aspects too.
Some companies charge ‘abortive’ fees where they will invoice you even if the debt is not collected. And there are also some that once the debt is collected, will deduct disbursements in addition to any commission charged.
A company’s reputation is built on what they have done, not what they say they will do. This is a clear indicator as to the type of experience and results you can expect.
If you choose the right Debt Collection Agency, the margins for success can be very very significant. It can double, triple, maybe even quadruple the results simply by making the right decision. But of course, the decision is very much down to you and indeed, it will no doubt be one of the very many decisions you make on a regular basis but as with anything in life, it pays to make the right choice.
For information or help & advice, call our New Business Team free on 0800 043 6922