When you are aiming to hire the right debt recovery agency research is the key. Find information on their specialization since each agency has a certain area of specialization. Some may be specialized in collecting from large businesses while others may be dealing with small business or home businesses. Get to know sorts of debtors they often deal with. You can also find out the agency debt collection process in order to avoid loopholes in future. Once you are satisfied with their specialization and the collecting process you can rest now the agency will be able to meet your objectives.
To avoid getting into legal complications later, ensure the agency you are hiring is legitimate and it follows all rules for debt collection agencies in that particular state and locality. Consider whether it’s licensed. If the agency is illegitimate your customers may sue your business for harassment therefore finding yourself falling in a lawsuit trap. When you are working with legitimate agency, you will always be informed that the agency will help you improve your business other than always being in court with endless cases from your customers. Check with the agency if they use “Skip Tracing”
Sometimes debtors tend to escape when they are under pressure to own up their debts. To counter this, good collection agencies use what is referred to as “Skip Tracing”. This is whereby the agency owns and has access to several databases to locate a debtor who has run away without settling the debt. With this your business can now be sure it will be able to collect debts from all sorts of customers therefore enhancing its growth and development. Agency like Best Debt Collection Agency Brisbane does it better. With customers acknowledging that even if they run away they will be traced, there will be less cases of debtors running away since they know they will be finally traced.
Ensure Agency is insured
Collection agencies use various methods and tricks to collect money, so no matter how much research you do, there are chances a debt collection agency uses very aggressive methods to collect money which may make debtor feel that the agency acted in bad faith. With this kind of instances the debtor option may be to sue your business and the agency collecting the money. In order to stay away from these circumstances, you should ask the debt collection agency to produce insurance certificate, since it will help you keep off from any potential lawsuit. With this you will be able to run your business without fear of your business being held liable in mistakes caused by debt collection agency.
Take fees and contingency costs into consideration
After getting few collection agencies which may work for your business, consider their cost. It’s better to notice that various agencies charges differently depending on various consideration factors. So you should analyze their cost well and choose the one offering economic friendly charges which you can afford. There are some payment structures which are involved in debt collection such as;
Flat fee: This is a straight forward fee which is a little bit small and is associated with “pre-collection fees”.
It is generally offered early in debt collection process.
Contingency: This is a whereby you pay nothing unless they collect which is typically from 25% -45% fee.
The other thing which you should remember is that, once you’ve hired a debt collector don’t expect the full and total amount you’re owed. Knowing this, it’s very important to first exhaust all other options available before hiring a debt collection agency.