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 Debt Collection Agency for your Business? How effective will this be and will it provide you with a successful recovery of the monies owed?
In this article, our experts have put together a comprehensive guide that should hopefully provide food for thought along with tips for choosing.
Choosing The Right Debt Collection Agency
Choosing the right debt collection agency is one of the most important tasks in the interests of unpaid debts. When cash flow is affected, collecting money through a professional may be a good fit for your business.
Some companies operate on upfront payments to avoid the hassle of unpaid fees, however, sometimes this cannot be avoided. Businesses that operate with due diligence, by providing payment plans etc, can still be met with troublesome debtors.
A professional and proficient Debt Collection Company can be a real asset as a partner to any organisation. It is natural to want the maximum collection of overdue monies, however, you only get what you pay for.
It is imperative you do your homework in order to ensure it is a worthwhile and profitable exercise. The number of accounts that end up costing more to recover due to lack of research is very high.
Oscar Wilde once said “A cynic knows the price of everything and the value of nothing”
There are various factors to consider when undertaking the collection of accounts receivables. The scenario is similar to employing new members of staff as, for instance, you are effectively looking to employ someone to work on behalf of your business.
The protocols of performing such a task should be done in very much the same vein to achieve the desired result. You would need to take care in ensuring the debt collectors provide top levels of customer service.
So the positives of choosing the right debt collection agency are plain to see but what about the flip side?
Choosing The WRONG Debt Collection Agency
It is a simple fact that making a mistake when choosing the right debt collection agency can be far worse than choosing none at all! There are many reasons why choosing a debt collection agency that uses negative tactics is not recommended.
Professionalism is the key factor that should rank higher than all others.
Instructing a collection service 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.
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. 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. It is a simple fact that where it is largely a results-driven exercise the outcome will be far more favourable.
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. The decision is very much down to you and it will no doubt be one of the very many decisions you make on a regular basis.
Commercial Debt Collection Agency – Why Use Federal Management?
At Federal Management, we are the UK’s leading commercial debt collection agency, providing the highest recovery rates. Since 2004, we have successfully collected debts for our clients in almost all industry sectors.
We are one of a small number of Debt Collection Agencies in the UK to be regulated by the Financial Conduct Authority.
Not only this, but we are proud long-serving members of the Credit Services Association. There are a plethora of reasons why you should our expert team to recover your business debts.
The Federal Management E-Factor:
- 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.
FAQs – Choosing the right Debt Collection Agency
Aren’t all Debt Collection Agencies the same?
No, all agencies are not the same. Federal Management has an established reputation for delivering a leading debt collection service that helps business recover debts in the most efficient and cost effective way possible.
We understand that every case is different, so our team works closely with you to ensure your needs are met.
Doesn’t using a cheaper Debt Collection service carry less risk?
Not necessarily but the old saying is you get what you pay for.
It is important when choosing the right Debt Collection Agency for your requirements. They should have the expertise and resources necessary to successfully collect your outstanding debt.
Cheap or free debt collection often comes at a hidden cost in many respects. This can be in terms of hidden fees, their level of professionalism and the value of the debt owed to you.
What about compliance with UK legislation?
Federal Management are fully approved and regulated by the Financial Conduct Authority to provide FCA regulated Debt Collection Agency services. We act compliant with current UK legislation, including The Consumer Credit Act 1974 and The Data Protection Act 1998.
We take great care in safeguarding customer data and protecting our client’s reputation within their industry by making sure that all collected debts are done so in accordance with the law.