What to Look for in a Collection Agency
When clients neglect to pay their bills, it can have a big impact on your business’s bottom line. Hiring a reputable debt collection agency can put some of those past-due balances back into your budget. Ideally, the firm you decide to work with should be able to effectively collect from late accounts without damaging your reputation with your customers. Here’s what you need to consider when choosing the right debt collector for your business.
Professional organizations uphold the standards and ethics of the debt collection industry, and member companies agree to abide by the best practices established by the organization. Look for a firm with accreditation from the International Association of Commercial Collectors, the Commercial Law League of America, the Credit Research Foundation, and other industry watchdogs.
Track Record and Reputation
Check with the Better Business Bureau to see whether an agency has received consumer complaints, and how and if these complaints were resolved. You should also see if the company can provide references of other satisfied customers. Reading online reviews and testimonials can give you a good picture of a firm’s reputation and success rate. In Louisiana, debt collectors must have a current license from the Secretary of State. You should check to see if this license is in good standing.
As technology advances, the capabilities of many debt collection firms have increased. Look for a firm that offers features such as automated collections, credit and risk scoring, online payments, robust tracking and metrics, and smart outreach. Agencies that rely on the latest technology have a better chance of collecting long-overdue debt.
Debt collection agencies typically charge a percentage of each account they successfully collect. Fees range from 10 to 50 percent and vary depending on the age of the account in question, the amount of debt, and other factors. Most agencies have a tiered pricing structure and do not charge for their services unless they are successful. Make sure you get the fees and payment terms in writing.
Businesses all over the world trust Altus Global Trade Solutions for legal, professional, and effective debt collection services. We are nationally and internationally accredited, and our smart recovery solutions can help improve your cash flow and your overall bottom line. Call 504-471-0948 or place your accounts to get started today.