Factors That You Need To Consider In Choosing the Best Collection Agency
The management and collection of accounts receivables is generally stressful. You send mails they don’t respond. You try calling, they ignore your calls. You’ve sent many reminders that their accounts have become past due but they don’t seem to bother. They say one thing today and say another different thing tomorrow. This is what many business owners, business administrators and managers, financial controllers, and accountants go through, as they try to chase payments from the persons, dealers, other businesses and customers and other customers that owe their business money.
A Collection Agency collection agency can help you manage your accounts receivables better and take off this stress from you. However, you must do some homework if you want to choose the best collection agency in North York. As you know, there are many collection agencies in Canada but not all of them offer the accounts receivables management services that your business needs.
The following are the important factors that you really need to consider.
Proper market knowledge:
A good collection agency must have proper knowledge of the market in which it is required to operate in offering its accounts receivables management services. The collectors must have the knowledge and skills required for the successful collection of some particular account type. For example, for accounts receivables collectors to work in commercial institutions they must be very familiar with the indemnities and corporate terminologies.
Similarly, those working in the consumer debt collection agencies should ensure that they demonstrate aptitude and thorough knowledge of the regulatory framework that the various Canadian provinces have developed, the relationship between the lender and the guarantor, and the relevant bankruptcy rules related to consumer debt collection. It is very important for credit managers and collection agencies to be fully aware that every collection market is different from the other and should thus be handled separately.
Policies and procedures:
You should take your time and investigate the policies and procedures of the collection agency in Canada. These will help you know when it begins working on a particular account, how it issues collection letters, as well as whether it has sufficient well trained and professionally qualified employees. Third party accounts receivables collection agencies must comply with the consumer protection laws and other relevant legislations that regulate the collection and recovery of debts. Take your time and enquire about the policies and procedures that the agency has put in place for facilitation of compliance.
References and reviews
Checking references is a very important step in the selection of reliable collection agency. Once you get the references, contact two or more creditors, who use the services of that particular agency at the moment. Enquire about the success or shortcomings of their arrangements of accounts receivables collection and the level of satisfaction amongst the clients with the services that the agency offers or offered to them. You can also check with the local Canadian Chamber of Commerce or local grantors to check if the collection has built good reputation in the local community.