- June 5, 2019
- Posted by: Taurus Collections
- Category: Blog
Let’s go straight in on this one, because we know what makes a good collection agency. (yes, even if we do say so ourselves!)
So here are 5 tips to choose a good collection agency for your business:
- Reputation & trustworthiness – always look for an agency with at least 5 years of trading history. A lot of collection agencies set-up then disappear within a year or 2. Obviously these are very untrustworthy collection agencies! They need to be able to protect your reputation by providing a professional service. And not to mention maintaining valuable customer relationships when handling debts on your behalf.
- Testimonials – always check online and read what other people think of their experience. Either check Google Reviews or Linkedin to see if they are trustworthy. Do they treat their customers with respect and provide an ethical and professional service? And most of all do they actually collect debts successfully?
- Success rates – ask the agency you enquire with what their success rate is. Its important they have a high success rate of collections at a pre-legal stage. Its very easy to take on a case and just pass to lawyers to collect. You need to know how good they are at collecting pre-court. Pre-court collection is the most cost-effective method from your perspective. A good collection agency should always say that court action is an absolute last resort!
- Fees – a good collection agency will always have reasonable commission rates of between 5-15%. (Depending on age, value and type of collection work required per account). Some agencies may charge a small administration fee to start the work and cover initial costs. Keep in mind that the lowest commission rate doesn’t always mean the best result. You get what you pay for in the collection world, and selecting the cheapest collector could mean you are selecting the least skilled!
- Debt collection process – a good debt collection company will have proven methods for collecting debts successfully. They will use strategies that actually deliver results. When looking at how to find a good collection agency, consider: What methods do they use to collect the debts? How many years they have been in business? Are they experienced? Have they serviced many clients in their industry? And what precise techniques they use to deliver fast results?
How To Find A Good Collection Agency
The above is not an exhaustive list, but it will set you in the right direction to choosing a good collection agency.
It’s a very competitive landscape but once you have found the right match for your business make sure you organise regular catch-ups. Usually either by phone, email or in-person, so you know exactly what is going on with your debts.
Need help? Contact Us.
If you are wondering how to find a good collection agency, please don’t hesitate to email us email@example.com. Or give us a call on 01332 565 350 to see how we can help you improve your cashflow and debt collection rates.