+ Understanding the Role of a Collection Agency
A collection agency offers services designed to help your business collect unpaid debt. The agency receives a percentage of any monies recovered on your business’ behalf. In addition to services such as formal letters and phone calls, a collection agency also provides skip tracing, litigation and technological features like online portals for ease of payment.
While the services themselves matter, the individual methodology and philosophy of a collection agency is much more important. As a representation of your business, a collection agency must be professional, respectful and compliant. In many cases, the agency is attempting to collect outstanding debt from your existing customers and care must be taken to preserve that relationship. Treating consumers with courtesy, dignity and respect, and strictly adhering to local, state and federal collection laws, must be the rule — not the exception
+ Making the Decision to Hire a Collection Agency
Many businesses with outstanding debt want to know when to bring in a collection agency. In general, sooner is better. Most companies send past-due accounts to collections somewhere between 90 and 120 days. Waiting any longer often means the odds of recouping that debt drop significantly.
These four signs are a good indication that it’s time to hire a collection agency:
• You’ve received no response to your attempts to collect the money you’re owed.
• Your customer agreed to a payment plan, but has made no attempt to follow through.
• Your customer denies owing your business money.
• Your customer has a history of not paying in a timely manner.
Customers displaying these signs are generally unlikely to pay their debts without the involvement of a collection agency. Still, you have a few options before you seek outside assistance. Begin by contacting your customer to inquire about the outstanding debt. Reach out frequently via phone and email. If this doesn’t resolve the issue, send a formal, written demand of payment that clearly outlines the details of the debt owed.
It’s time to contact a collection agency if these efforts have no result. At Business and Professional Collection Service, Inc., we have the experience, training, and technology to maximize your return, and we know how to do it while remaining courteous, respectful, and compliant.
+ Choosing the Right Collection Agency
It isn’t always easy deciding which collection agency is right for your business’ needs. Narrow down your options with these steps.
• Get recommendations: Ask a trusted business associate for a recommendation, and check the Better Business Bureau for a specific company’s ratings. Search the Association of Credit and Collection Professionals (ACA International). Be sure that any collection agency you’re considering is licensed, bonded and insured.
• Look for an agency that specializes: Consider the nature of your business to see which agencies on your short list best serve your industry.
To learn more about BPCS, contact us now.
+ Understanding the Role of Technology in Debt Collection
The collection industry has evolved over the years. BPCS uses the latest technology to recover unpaid debt and has the tools to maximize your return.
• Skip tracing: Comprehensive databases make it possible to find consumers who have moved without a forwarding address.
• Client portal: Access to client accounts makes it easy to check the status of your accounts, run reports, submit new accounts, and communicate with our agency in a compliant manner.
• Payment portal: This portal allows consumers 24/7 access to review and/or make payment on their accounts.
+ Working as a Team
Working successfully with a collection agency means developing a partnership. Be prepared to provide as much information as you can about the consumers. That includes names, all contact information, details about any response to your own collection efforts, any paperwork relating to the purchase or transaction, and anything else that may help your agency collect on your behalf. Keep in mind that the more information you can provide, the greater the chances that your debt can be recovered.
Learn more about what to expect when you partner with BPCS — contact us today.