If you own a big corporate house, then collecting debts from your clients and other businesses won’t be a tough job. It’s because your company will have a separate department consisting of debt collectors, who would make sure that your company gets back all the dues it deserves.
But, what if you are an owner of a small business house?
Would you have ample amount of resources (money) to hire a complete team of debt collectors? If no, then you must hire a business collection agency to get back all your debts on time. These agencies have a well-knit team of “expert debt collectors” who know how to deal with the debtors, and they strictly adhere to state and federal laws. So, such kind of commercial collection service won’t let you down, no matter what.
Are you skeptical about hiring a debt collection agency service? Yes? Then don’t be because, they are not going to cheat you or let you down. You need to accept the fact that not every business debt collection agency is created equally and not every agency is right for your distinctive business. Therefore, here are a few things that you should consider before selecting or hiring a business collection agency:
Do thorough research
The specialization of a debt collection agency varies a lot. For instance, some are good at securing funds from renowned companies, while the others work well with home-businesses. So, what you need to do is research about the company, and find out what sort of debtors they deal with, and what kind of businesses they serve. If you do this research you’ll able to understand whether that particular agency is suitable for your company or not.
Verify the legitimacy of that agency
Different localities have different rules for debt collection agencies. For instance, if your office is located in Houston, then you must research on various collection agency services Houston, and choose the one that follows Houston’s legislature on debt collection. Also make sure that the agency that you are hiring or want to hire has a license, and adheres to the rules of the ‘Fair Debt Collection Practices Act’.
Compare their fees and contingency costs
Once you have found a few debt collection agency services that might actually work for your small/big business, then it’s time for you to look into their costs. The way in which these debt collection agencies charge for their services can vary. Therefore, choose the one that fits your budget.
Ask them if they use “skip tracing”
Some reputed agencies use the “skip tracing” tactic to have access to several databases, which allow them to locate the debtors who have left no forwarding address. This is really important, especially if you’ve been personally contacting your debtors through phone calls and written letters, but they have been routinely ignoring you.
Dealing with debtors is a really a frustrating task, especially when they ignore your letters and phone calls. Trying to collect your company’s debt yourself can drain almost all your resources. So, if you think that you have less resource in hand, then it’ll be the best if you hire a debt collector or a debt collection agency service instead of simply letting your debtor get away with your money.
Jag Cruse owns several debt collection agency services Houston, which consists of experienced debt collectors. His articles will help you know more about collection agency services, and will help you choose a best collection agency service.