When businesses don’t get paid or paid in full by consumers,
they can either forget the debt and count it as a loss or attempt to collect on
the debt. Most businesses choose to go this second route; however, instead of
trying to track down and collect on the debt themselves, they’ll typically hire
a commercial debt collection agency to do the work for them. However, before
hiring a commercial debt agency, it is important for businesses to understand
how they work and how, exactly, to select the best one.
Services
First of all, be aware that not all commercial debt
collection agencies offer the same services. All have the end goal of tracking
down and collecting on unpaid debt, but the way each agency will go about it
will differ. The better agencies really go the extra mile to collect on debt
and may provide services such as:
l Relocating
individuals who have moved away and still owe money
l Account
forwarding to other agencies if necessary
l Consultations
and other helpful debt collection services
Size
In addition to considering the services offered, businesses
that are attempting to collect on debts through commercial credit agencies are
encouraged to consider the size of the agency. One that is too-small may not be
able to handle the collection needs of a larger business. Both the agency and
the consumer should be clear on how much the agency can handle and whether or
not it can adequately meet the needs of each particular business.
Licensing
Business clients are encouraged to ONLY do business with
commercial debt collection agencies that are fully licensed to work with
clients and to do business in their state. Licensing regulates the agency and
ensures that it operates legally and fairly, so not being licensed should
certainly be reason to turn down a particular debt collection agency’s
services. However, licensing is not required in all states, so business clients
should ensure they know the laws as they relate to their particular area.
In addition to looking for a licensed agency, if applicable,
borrowers should also look for an agency that is bonded and insured and that is
a member of related trade organizations.
Staying Informed
After carefully choosing a debt collection agency, business
clients should keep careful track of the success that their agency has with
collecting on debts. Many agencies will offer an online way of tracking
success. If these reports show that the agency is having decent success, then
great! If success rates are not good, however, then it may be wise to start the
process over again and find another collection agency to assist with
collections.
Collecting on bad debt is rarely easy, but, with the right
commercial collection agency, it can certainly be made a whole lot easier.
No comments:
Post a Comment