If you’re thinking about choosing a debt collection agency to help you collect on overdue invoices and unpaid debts, there are a few things to bear in mind to make sure you find not only a professional and experienced agency but an agency that is a good fit with your business.
Think of it as a business relationship that is almost an extension of your current credit control team.
A team who are on hand to make sure your credit processes and procedures run as smoothly as possible, and when overdue invoices occur, they don’t take up too much of your time.
Commercial collection agency services
Seeking professional help when it comes to collections is thought of as a sensible step for businesses.
Helping to protect the top line, manage cash flow, and generally keep businesses operational!
We understand that many small businesses are reluctant to act when invoices become overdue, mainly for fear that it will jeopardise business relationships in the future.
However, good collection agencies will consider your business relationship and everyone’s circumstances. The best commercial collection agencies will make themselves completely flexible in their approach and adapt to different situations while achieving a successful outcome. Negotiating appropriate arrangements suitable to the client’s requirements.
To find out just how successful a good collections agency can be, even in the most unusual of times, check out our post that looks at Direct Routes, route to successful collections.
How to choose a business debt collection agency
Deciding on the right debt collection agency can be a daunting process, especially if all collections have previously been carried out in-house.
That’s why it’s essential to:
Do your research – when starting at the very beginning of the process of finding the right collection agency for you, you must do your research. Make sure to check out the company in question’s online presence. Do they have any online reviews? Is their website content credible? Do they display contact details? Have you checked these out? You could also check out how long they have been trading, helping to show how much experience a particular agency has under their belt.
Ask a friend – asking business associates or those who may have had previous experiences with debt collectors is always a great place to start. Word of mouth recommendations rate very highly and can put your mind at ease instantly. You could also check out a company’s testimonials online and success stories to find out more. Recommendations play a vital role when choosing the right collection agency.
Fees and pricing – are their fees and pricing transparent with no hidden costs? How does their pricing compare with others in the industry?
Speak to the company directly – you can gauge a lot about a company from the information and detail they provide to you over the phone. You need to have confidence in their collection procedures and processes and understand what happens at each step. Ultimately, you need to know how they will help make your life easier.
Members of the CSA – the Credit Services Association is the largest membership organisation for debt collectors in the UK. Working with a CSA member agency provides you with confidence that they are working to the CSA’s Code of Practice and following updated and most recent guidance.
What to look for in a good working relationship
Mutual respect and trust. A professional collections agency will listen to your requirements, allow you to track progress, provide you with regular, relevant, and useful information.
Compatible match – the agency you have chosen has the same ethos and company values as yourself. They are a company that can meet your needs and who can prove they have an exemplary collection record.
Honest advice – agencies should regularly review outstanding debts with honest advice provided on the likelihood of recovery. You need a team that will be honest with you throughout.
Methods used to collect debts – different agencies will use different methods to recover debts owed. It’s important to find out what these methods are and if you’re happy with the approach being taken.
Direct Route is a market-leading B2B credit management service company. Our services include zero cost commercial debt recovery, automated credit control, credit account opening, and account monitoring services. Our flagship service has helped over 12,000 businesses recover business debt, often at no cost to our customers.
Direct Route – zero cost commercial debt recovery (and much more)