What Makes a Good Debt Collection Agency?

When you’re looking for a commercial debt collection agency, it’s easy to feel overwhelmed. There are too many options out there, which is why it’s so important to learn to identify the best ones.

We know what makes a good debt collection agency because we strive to be the best we can be. So today we wanted to show you what to look for in a good debt collector!

 

1. Reputation and Trustworthiness

Commercial collection agencies that are worth your time have a good reputation and are trustworthy. When you’re looking for a debt collector, you want to make sure they’ve been in business for at least 5 years.

A good commercial debt collection agency will also be able to protect your reputation, provide stellar services, and maintain valuable customer relationships when handling your debts.

 

2. Positive Testimonials

When you’re doing your research into a commercial debt collection agency, you have to pay close attention to their testimonials.

You can check their website to see if they have a testimonials page, but you can also go to Google Reviews or check their LinkedIn to see what clients have to say about their experience. Are they trustworthy? Do they treat customers with respect? Do they provide an ethical and professional service?

How to collect a debt from a customer

3. Success Rate

Once you have a shortlist of options, contact each commercial collection agency and ask about their success rate. They need to have a high success rate at the pre-legal stage for you to consider them.

It’s easy to just have lawyers collect the debt, but that can be avoided and it’s more cost-effective for the client. Legal action should always be the last option if you’re dealing with an effective debt collection agency.

 

4. Consider The Fees

When your commercial debt collection agency is good, they will provide reasonable commission rates. The fees should be between 5 and 15 percent. Of course, this can vary depending on age, value, and the kind of collection work they’re required to do for each of your accounts.

Though it’s important for commercial collection agencies to have reasonable fees, a low commission rate is not synonymous with quality and good results. Remember you get what you pay for, so don’t go for the cheapest option.

 

5. Debt Collection Process

A debt collection agency where debt collectors know what they’re doing will have proven and effective methods of collection. So you need to enquire about this!

What are their methods for debt collection? What kind of techniques do they use to deliver fast results? How long have they been in business?  Have they serviced many clients?

 

How to Find the Best Debt Collection Agency

If you want to find the best possible debt collection agencies, this list will help you do that. By keeping these factors in mind, you’ll find the right fit in no time.

Do you need help with debt collection? Our services might interest you! Contact us and enjoy the benefits of a good debt collection agency.