How to choose the right collection agency for your business.docx
With all the bad press about collection agencies how do you decide which one to use or if you want to use one at all? This podcast will help business owners make an educated decision about which collection agency they want representing their business and the most efficient ways to work with an agency to get the best return. I will also talk about the red flags that can alert you that you need a collection agency, signs to look for, what to expect and how using a collection agency can affect your business. Failing to have a collection agency hired and ready to collect on your past due accounts before it is needed is the biggest mistake business owners make in collections. This podcast is critical for anyone who needs to hire a collection agency but doesn’t’ know how to do it or what to look for.
When is it time to call in the big guns on past- due accounts? This how-to will help you make the best decisions when hiring and using a collection agency.
Are they familiar with your specific business Do you need a consumer or commercial agency – who are your customers Are they members of anything – check them out Find an agency that can be sensitive to a consumers situation Do they comply with state & Federal laws
Physical address, good contact information Logo’s of any memberships they hold How do they collect? Pricing Testimonials If something seems to good to be true – it probably is!
No physical address or phone number listed on their website No affiliations to trade or networking groups A live person doesn’t answer the phone Not licensed, bonded or insured They have the lowest price They won’t sign a contract
What type of collections do you specialize in? What trade associations do you belong to? Do you call, send out letters, both? Have they been sued for law violations? How do you get paid and when do I get paid Ask for references or testimonials
How past due will you allow a customer to get, 60 days, 90 days, 120 days? The sooner you place an account with a collection agency the better your chances are of getting paid.
No response Customers who pay when and if they want to Repetitious, unfounded complaints “That’s not my bill!” Marital problems Starts to slowly pay later and later Frequent address / phone number changes Frequent changes in employment
Collects on past due accounts Send out verification Skip tracing Report to the credit bureaus
Gather your information Cooperate Use only one agency Stay updated Don’t call for frequent updates Let them know if you receive a payment
Get Paid - Commission Pay you - Monthly or flat fee statements with checks No collection – no fee
You will have more free time to work with good paying customers You will have less stress You will make more money
Directory of collection agencies by state: http://collection-agencies.regionaldirectory.us/ Blogs http://receivableaccounts.blogspot.com/2011/12/auditing-your-collection-agency-101.html http://www.Credit-and-Collections.com Groups LinkedIn group: The Guide to Getting Paid Join here: http://www.linkedin.com/groups/Guide-Getting-Paid-2652085?home Credit and Collections Discussion group, to Subscribe, send an email to: email@example.com Business credit information: http://www.cortera.com/ Online invoicing and collection tracking: http://www.invoicera.com Books by Michelle are available everywhere and on Kindle!
Connect with me: Customer’s owe you money?http://www.linkedin.com/in/creditmd Learn how to get paid with the books in The Collecting Money Series by Michelle Dunn@DunnMich Learn more www.MichelleDunn.com & www.Credit-and-Collections.comMichelle at a recent visit to NHPR for a national interview about zombiedebt, collection practices and debt collection laws.Listen to NPR to hear the interview! Join the discussion on Facebook:http://www.facebook.com/pages/The-Guide-to-Getting-Paid/175893280661