When you’re in the process of hiring a debt collection agency for your organization, there are no doubt many questions on your mind. Hiring a new agency for your business can be a big step because of the important role they play in the overall health of your business.
Generally speaking, many businesses are concerned with how effective their debt collection efforts will be, how their customers will be treated, the protection of data and if the agency has a level of proficiency within their industry. For example, do they understand the intricacies of medical debt collections or debt collections for lawn care companies?
A reputable debt collection agency should have no problem answering some of these basic questions and they should even address some of these in their initial consultation with your organization.
Want to know some of the basic questions many businesses ask a collection agency before hiring? Check out some of these questions and the reasons why.
What is your fee structure for debt collections?
One of the more commonly asked questions a business asks about debt collections is the fee structure. How much will it cost to collect on your overdue payments. Understandably, many businesses hesitate to hire a collection agency because they feel they cannot afford to part with a percentage of the money owed. While many collection agencies vary in fee structure, one of the best solutions is to work with a collection agency offering a low-cost debt collection program. But as a business, it is always important for you to understand the fees associated with collecting on your behalf.
What is your success rate in collections?
This is a question that is often asked but not easily answered. The variables involved when it comes to collecting money are endless. And while companies like yours may be interested in a track record, it’s different for every business that needs collections. Of course, you’ll want to know how successful the agency has been in recovering debts but keep in mind a few factors. How old are the debts you want collected? How good is your record keeping? Do you have internal procedures such as regular invoicing and prompt follow-ups? All these factors and more contribute to successful collections.
What compliance measures do you have in place?
A business is entrusting a big part of their business operations to a collection agency and many inquire about how these collection agencies manage compliance. As you might imagine, the collection industry is one of the most heavily regulated industries and for good reason. Agencies are handling personal information and data and they are calling consumers regarding personal financial situations. First, a collection agency should be following all laws and regulations and you should be comforted in knowing that. Second, the agency you hire should be protecting your data at all cost. Here in American Profit Recovery compliance is a major piece of the foundation of this company and it is one of the highest priorities.
Learn more about our compliance efforts here.
How are you going to communicate with my customers?
An important and mission-critical question many businesses ask a collection agency before hiring is how their customers will be treated. Decades ago, a business just wanted to recover their money. But now, a significant goal of a business is to get paid and keep their customer. And that should be the goal of the third-party collection agency you hire. When you ask a collection agency how your customers will be treated you should hear nothing less than the words dignity and respect. Effective collection agencies understand that tactful communication coupled with a philosophy of listening and understanding is one of the best ways to see results in your collection efforts.
Do you customize your approach for different types of debts?
Where customization comes into play when it comes to debt collections is to how that professional collector works out a resolution with the consumer. Every situation is unique And the solution to one person’s debt can drastically differ from another consumer. Many businesses may ask if there is a different approach to medical collections versus lawn care collections. And while that collection professional needs to understand each industry, many times following a methodical approach and proven procedures can be effective in a multitude of industries.
Do you have questions about hiring a debt collection agency? Book your free consultation here!