How do you select the RIGHT Collection Agency?
For most businesses, collection of accounts receivables that are long overdue is highly stressful and frustrating, and takes a lot of time. If you decode to follow up the bad debts in persons, you will end up having spending your precious time chasing customers to pay, while you should actually be concentrating on how to manage your business so as to maximize its growth and returns in the future.
To avoid the frustration and waste of time as you chase payments from non paying customers, consider outsourcing the service to an established collection agency. There are many collection agencies in Canada that employ well trained and experienced staffs to help business collect debts and payments from customers who are not willing to pay.
The right collection agency is that which has the right expertise and knowledge, and apt negotiating skills that are needed to help in the complete recovery of debts. The collection of debts from customers involves a delicate balance of enforcing the law while maintaining relationship. You don’t want the overdue accounts collected haphazardly and inhuman manner such that a bad image of your business is created in the customers and the public.
Ensure that you choose a professional collection agency and provide it with all the information and support they need to enhance the management of delinquent accounts. Because there are many collection agencies out there in the market, you should know the exact factor that you need to consider in your choice and selection.
Like any other business owner or manager, you want to work with reliable collection agency that’s professional and responsible in its work. Remember that the collection agency is your agent and will represent you in its actions. Some of its actions bind you as the principal. Improper conduct by the collection agency may have serious negative impact on the public image and reputation of your company.
You also want to work with collection agency that provides high rates of recovery at reasonable cost. In most cases, this decision is tricky to make because you should not simply go for the lowest bidder. You should consider other factors such as the capability of the agency to recover. If the collection agency charges relatively higher comparison but manages to collect higher amounts of money, then it means that you will also get more amount of money as the business. If you simply go for the lowest bidder without considering other factors, you may get subpar service and results.
In addition to seeking the help of collection agency in improving the collection of your accounts receivables, also consider making payments by customers easier if you want to improve the collection of your accounts receivables. Your accounts receivables are likely to become overdue if you set up a rigid payment system. If you want to get paid in time, accept various methods of payment including checks, direct bank account deposits, electronic transfers, bank wire transfers, etc. With threes systems in place, a customer who has defaulted in payments will have no excuse.