Hiring a third-party collection agency could be one of the greatest decisions you can make for your company. If this is your first time working with Debt Collectors, you’d probably don’t know the things and features to expect from them.
Ideally, when hiring a debt collection agency, you must be aware and think carefully about what kind of relationship you want to establish with them. It’s essential that the collection agency you choose can work with your business team in harmony while meeting your expectations for your business needs.
But remember, not all debt collection agency is created equal. Some agencies are great from the other, and few are worst. So, make sure that you know what kind of specialization you want to hire so that your chosen agency features will suit your business needs.
For example, if you’re a small business, then preferably a debt collection agency that you should hire has specialization into smaller debts. But if you’re a corporation, then hiring an agency that focuses on larger debts could be beneficial to your business.
What to Expect from a Debt Collection Agency?
Despite their differences, these agencies have things in common:
- Complete Expertise
It is given that a collection agency should have complete expertise in your business industry. If a collection agency’s primary focus is an insurance product, then the company should need to be fully aware of earned premiums, audits, bonds, deductibles, and can define these in detail to the debtor and explain how the balance was formed.
It’s nonsense if the one you hired will only call your debtors and demand for the unpaid bills. The collection agency must explain everything to them regarding the premium or non-premium payments, the same process as an agent would do by educating your clients.
The same methodology also applies to other industries too. Debt collection agencies should be knowledgeable about your business standards to provide outstanding service from you (the client) and to your previous customer (debtors).
- Online Access
If your chosen agency has online open access, then the agency is quite competitive like the others. Because it enables you to review all the debtor’s account, current payment status, and other valuable information from the agency’s website in real-time.
You need to collaborate with your sales representative and explain your company’s expectations and requirements. You can do this by asking the details from your agency about the reports like recovery analysis that provides information according to the age of the accounts, status reports, and remittance statements received every month.
- Inventory Updates
Your sales representative should host a quarterly review meeting with the collectors. This is a great way to tackle questions and other concerns about the accounts. Consistent communication with operations can establish trust and gives proof that your collection agency is up-to-date regarding the current issue of your company.
If all the collection processes have failed you big time, the collection agency will inform you immediately about the final option according to the balance amount if litigation is required. The agency should give and notify you about the detailed summary that gives you valuable information like asset and financial statement to make a wiser decision.