Customers Won’t Pay? How to Choose a Collection Agency

Some customers, especially the ones who default, can be extremely stubborn at times. No matter how much you call them, mail them or text them, chances are your efforts will all go waste. But does this mean, you need to write the pending dues as bad debts? No, it does not need to be like that. Since every penny counts, there are always ways and means to collect money on outstanding accounts. When faced with such scenarios, the best way out is to partner with 3rd party collection agencies. Collection agencies are focused on recovering past due bad debts, which are pending from a long period of time. Such agencies have trained staff, which is well qualified to extract and collect money from stubborn customers, who are refusing to clear their pending dues. Despite all methods, if the customers still refuse to clear the outstanding debt, then such debt collection agencies resort to legal action against the customers, in order to collect as much money as possible. For this very reason, it’s very important to know how to choose the right collections agency, so that your business can recover as much money as possible from defaulting customers. Here are some tips which might help you in choosing the right collection agency to do your bidding. Currently, there are more than 5000 debt collection agencies in US itself. Some of these agencies specialize in collecting from individual customers, while others are focused on collecting from businesses and companies alike. There are some collection agencies which handle both types of collections as well.
  • Ask for referrals from people/companies: Most of the times, you will come across attorneys, individuals as well as businesses which are sailing in a similar boat as yours. In such scenarios, you can go ahead and ask for referrals from such people, who might already be using the services of such agencies for their own collection purposes.
  • Check online reviews: While word of mouth is a strong source of tracking down a good agency, any extra research will not hurt anyone. Before hiring an agency, it’s important to check the agency’s reviews online, in order to eliminate any bad choices.
  • Check for state licenses: Every agency will not be state licensed, which means it can’t collect money from any business/individual customers. This can translate into more problems with you, since it would fall under the illegal transactions purview.
  • Visit the agency: If possible, try and visit the agency you have shortlisted. This way, you might be able to get a fair idea on how the different collection representatives are taking calls and collecting money from their existing customers. If the environment and collection procedures appeal to you, you can choose accordingly.
  • Don’t base judgments on size: Don’t base your decisions on size. If a collection agency is big, it will not automatically become one of the best in the market. Even smaller agencies might be able to do wonders with your customers.
These are some of the key points which can help you take the right decision while choosing a good collections agency. In order to take the right decision, you have to do some research before zeroing in on an agency which fits your requirements.  

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