Many business owners admit that whenever a customer or anyone else owes them money, it carries with it a frustrating feeling.
Often, these debtors would try everything they can to avoid you such as ignoring any emails and reminder letters, not answering your calls, and try to evade you whenever they can. Any business owner knows that unpaid or bad debt is part of the risk of doing business but there are ways to minimise or eliminate the drawdown from this type of liabilities.
It can be really challenging trying to recover this by yourself though, and once you’ve exhausted all possible methods, the last step would be to ask help from a debt collection agency.
Debt collecting agencies specialise in the recovering of money from debtors owing businesses and individuals. Usually, large corporations have their own in-house collections team, but in especially difficult or complicated cases, still outsource certain jobs to debt collection agencies.
If you are just an individual business owner or are part of a small or medium enterprise which cannot afford their own collections team, you can simply hire debt collection agencies to recover any outstanding debt from your debtors.
Choosing One for You
There is a multitude of debt collection agencies available nowadays, and a simple search on the Internet will yield dozens of hits right away.
The choice of the right firm for you would be a big factor whether you recover your money or not, and how long it would take to recover. With this in mind, it is very important to filter out and choose one which would be proven to be effective in its job.
Do note that there are many legal requirements and rules which govern the way debts can be recovered, and if the debt collection agency you hire breaches any of these, not only would your money be in jeopardy, but it would also reflect poorly on your business and the way it deals with its clients.
A Few Factors
Knowing how important choosing the right debt collection agency is, here are a few factors you can look out for when choosing the right one for you and your business.
First off, try to see if the firm can provide you with a dedicated account manager from the get-go, up until your debts have all been fully recovered. Such a simple thing as this shows how serious they are, and how much importance they place in each and every client they handle. You should be able to talk with a real person as well even during the initial inquiry phase, in order to present your case clearly, and so the details can be sorted out on both your ends.
During the recovery phase or collections phase, see to it that the firm has an online service which could track the progress of your case in real-time, in order to give you that peace of mind and know that they’re just not simply lounging around.
Finally, give the company a background check and note how long they have been in operation, if they provide a “no recovery, no fee service”, and read up on customer testimonials and feedback to see what other people and businesses think of them.
Making It All Fit
Do note that not every debt collection agency is compatible with your line of business, your risk tolerance, and your operations mindset. There are personal choices that each business owner should know when selecting the right agency for their collection needs. The most important thing to remember is that the debt recovery agency should be a right fit for your business. Doing so would help in maximising the recovery of any bad loans or debts to you, and having an agency which caters specifically to your industry or business size would improve your chances
A responsible debt collection firm should always keep you in the loop as well. They should have excellent communication skills, providing personalised and timely service to each and every client. Their goal is to streamline the process as much as possible for you while letting you know of what’s happening each step of the way.
Each company’s fee structure should also be just and commensurate to the services which they provide. A “no recovery no fee” policy would be one the best options possible, as this takes the risk off the shoulders of the client, with only time as the limiting factor for recovery.
Lastly, an effective and capable debt collection firm should have a solid track record behind them with positive reviews from clients and peers alike. This should bolster their reputation in their capability to do their job successfully, providing you further confidence in choosing them for your recovery needs.
Contact JMA Credit Control now and see why we have in the business of debt recovery for over five decades.