How to choose the best collection agency for B2B and commercial debt

If your business extends credit to other companies, you’re well versed in the tension that can be involved when it comes to getting paid for your products and services. Your organization needs to get paid but you also do not want to damage those valuable relationships.

B2B debt collections are not just about recovering that money, but protecting your relationship and preserving future revenue is also mission critical.

Choosing the right commercial debt collection agency can make a dramatic difference.

Why do B2B collections require a different approach?

Commercial collections involve your organization and another business. In most cases, we are talking about much larger balances, longer-standing relationships, and ongoing contractual obligations.

What’s also vital to take into consideration is the future revenue with business relationships.

A demanding approach, in many cases, can cost your business more than the debt itself in the long term. A commercial debt collection agency that understands this will also consider the nurturing and continuation of your customer relationships.

What you should look for in a collection agency that specializes in commercial debt

As with any collection agency you work with, the most important factor is how they will communicate with your customers. In short, you should have confidence that they will implement a diplomatic, relationship-first approach.

Ask the commercial debt collection agency about:

• How they handle respectful and professional communication.
• How they solve problems in times of pressure.
• Prioritizing the preservation of the client relationships.

Ask about experience and expertise in commercial collections

Not all agencies specialize in B2B collections. If your priorities are getting your commercial clients to the table and improving your cash flow, you want an agency that understands how business-to-business collections work.

The collection agency you choose for your business should have experience in a number of areas and industries. They should also have experience working with contractors, suppliers service providers and others. The agency must understand the dynamics of getting another business to pay you.

Creating solutions with your commercial clients

Oftentimes your business clients are not paying because they can’t. Many are suffering their own cash flow challenges.

While many businesses will be proactive in paying these invoices, others may just put off paying them.

Your commercial collection agency should:

• Have the ability to work with your business customers to come up with payment plans.
• Help to facilitate communication to resolve any disputes.
• Act as a mediator to help both sides reach a resolution to the outstanding debt.

You’ll see your recovery rates increase when you implement a problem-solving approach.

Do you require a commercial collection agency that works nationwide?

Many businesses as you well know have customers spread across multiple states and regions. If your customers are in various parts of the country, you need a collection agency with national capabilities.

Using a collection agency that is licensed nationwide helps:

• Maintain a consistent collection process across states.
• Keep up to date on collection laws and regulations that can differ across states
• Help you implement further collection activity as your business scales.

Commercial collections should not be time-consuming for your business

Hiring a business-to-business collection agency should make your life easier and not more difficult. That’s why technology and ease of use is an important item to consider.

Some of those features to consider include online account management portals, 24/7 access to your accounts, a simple accounts submission process as well as the training and onboarding to support your team.

Additionally, the collection agency you choose should have strong customer service and regular communication.

You should never feel alone once you submit accounts to that collection agency. Customer service comes in the form of providing you with regular updates, offering accessible support in a timely fashion and acting as a true partner, and not just a vendor.

A tiered and strategic approach to business collections

Having a tiered approach to B2B collections is a must.

Some businesses may need a gentle reminder that they have not paid your invoice. And the authority of a collection agency in many cases gets that bill paid.

In other situations, your business will need a more assertive and methodical approach. You may have accounts that are difficult to collect, and they will require more expertise and communication to resolve.

Diplomacy is key, however. Your collection agency can still be assertive and keep that relationship with that business intact.

How do you know your commercial collection agency is a good fit for your business?

A collection agency is a good fit for your business when:

• The company aligns with your values and communication priorities.
• The agency understands the vital nature of your client relationships.
• They work as an extension of your internal accounting team.
• They communicate often and are available to your team.
• They are diplomatic and treat your customers respectfully and with tact.