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How to choose the right Collection Agency for your
Business
With all the bad press about collection agencies how do you decide which one to use or if you want to use one at all?
This podcast will help business owners make an educated decision about which collection agency they want representing their business and the
most efficient ways to work with an agency to get the best return. I will also talk about the red flags that can alert you that you need a collection agency, signs to look for, what to expect and how using a
collection agency can affect your business.
Failing to have a collection agency hired and ready to collect on your past due accounts before it is needed is the biggest mistake business
owners make in collections. This podcast is critical for anyone who needs to hire a collection agency but doesn’t’ know how to do it or
what to look for.
Hiring a Collection Agency
When is it time to call in the big guns on past-due accounts?
This how-to will help you make the best decisions when hiring and using a collection agency.
What to look for in a collection agency
Are they familiar with your specific business
Do you need a consumer or commercial agency – who are your customers
Are they members of anything – check them out
Find an agency that can be sensitive to a consumers situation
Do they comply with state & Federal laws
What to look out for when hiring a collection agency
Physical address, good contact information
Logo’s of any memberships they hold How do they collect? Pricing Testimonials
If something seems to good to be true – it probably is!
When to avoid a collection agency
No physical address or phone number listed on their website
No affiliations to trade or networking groups
A live person doesn’t answer the phone
Not licensed, bonded or insuredThey have the lowest priceThey won’t sign a contract
Questions to ask
What type of collections do you specialize in?
What trade associations do you belong to? Do you call, send out letters, both? Have they been sued for law violations? How do you get paid and when do I get
paid Ask for references or testimonials
When to use a collection agency
How past due will you allow a customer to get, 60 days, 90 days,
120 days?
The sooner you place an account with a collection agency the better your chances are of
getting paid.
Signs to look for when placing accounts for collection
No response Customers who pay when and if they
want to Repetitious, unfounded complaints “That’s not my bill!” Marital problems Starts to slowly pay later and later Frequent address / phone number
changes Frequent changes in employment
What does a collection agency do?
Collects on past due accountsSend out verificationSkip tracingReport to the credit bureaus
Working with a collection agency
Gather your information Cooperate Use only one agency Stay updated Don’t call for frequent updates Let them know if you receive a
payment
How Collection Agencies Get Paid and pay you
Get Paid - Commission or flat fee
No collection – no fee
Pay you - Monthly statements with checks
How using an agency affects your business
You will have more free time to work with good paying customers
You will have less stressYou will make more money
Resources Directory of collection agencies by state: http://collection-agencies.regionaldirectory.us/
Blogs http://receivableaccounts.blogspot.com/2011/12/auditing-your-collection-a
gency-101.html http://www.Credit-and-Collections.com
Groups LinkedIn group: The Guide to Getting Paid Join here:
http://www.linkedin.com/groups/Guide-Getting-Paid-2652085?home
Credit and Collections Discussion group, to Subscribe, send an email to: [email protected]
Business credit information: http://www.cortera.com/ Online invoicing and collection tracking: http://www.invoicera.com
Books by Michelle are available everywhere and on Kindle!
Join the discussion on Facebook:
http://www.facebook.com/pages/The-Guide-to-Getting-Paid/175893280661
Michelle at a recent visit to NHPR for a national interview about zombie debt, collection practices and debt collection laws. Listen to NPR
to hear the interview!
Customer’s owe you money? Learn how to get paid with the books in The
Collecting Money Series by Michelle DunnLearn more www.MichelleDunn.com &
www.Credit-and-Collections.com
Connect with me:http://www.linkedin.com/in/creditmd
@DunnMich
