Here are some things a small business should look for in a debt collection agency:
- Licensed and bonded: A small business needs to make sure the agency is licensed and bonded in your state. This means that they have met the legal requirements to operate as a debt collection agency and that they have agreed to pay you if they lose your money.
- Experience: Choose an agency that has experience collecting debts in your industry. They will be more familiar with the laws and regulations that apply to your business and they will be better equipped to collect your debts.
- Success rate: Ask the agency for their success rate. This will give you an idea of how likely they are to collect your debts.
- Fees: Understand the agency’s fees. They should be transparent about their fees and they should be willing to negotiate.
- Customer service: Make sure the agency has good customer service. You should be able to get in touch with them easily and they should be responsive to your questions and concerns.
Here are some additional questions a small business owner may want to ask the agency:
- What are your methods for collecting debt?
- How long do you typically take to collect a debt?
- What are your success rates for collecting debt?
- What are your fees?
- What are your policies on reporting to credit bureaus?
- What are your policies on communicating with debtors?
By asking these questions, you can be sure to choose a debt collection agency that is right for your small business.
Here are some additional tips for choosing a debt collection agency:
- Get referrals from other businesses.
- Read online reviews.
- Check with the Better Business Bureau.
- Interview multiple agencies before making a decision.
By following these tips, you can be sure to choose a debt collection agency that will help you collect your debts and protect your business.
At New World Collections we are experts in all aspects of bad debt recovery. We have the answers! Contact Us
