No matter what kind of business you are in, there are always going to be some customers who simply do not pay their bills. You send invoices that aren’t paid and make telephone calls that aren’t answered. Or maybe you just hear excuses.
At some point, most businesses turn to a collection agency for help. Collection agencies specialise in recovering debts that are past due — typically by 90 days or more. They rely on various forms of communication to reach customers and persuade them to pay, including phone calls, letters and emails. In some cases, they turn to the legal system to collect if other efforts are unsuccessful.
Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency says, “Good collection agencies are effective in recovering debts because they understand which tactics and strategies are most effective. They have tools and technologies to help them locate people who have moved or changed phone numbers. Beyond just basic collection efforts, some agencies also provide billing services such as processing, coding, printing and mailing. Some also provide telemarketing, accounting or business administration services. However, whilst there are many reputable collection agencies, there is a reason the industry on the whole has earned something of a bad name. Some agencies rely on unscrupulous, harassing or illegal tactics to collect, and that is something to avoid at all cost because it reflects poorly on your business. There are strict laws surrounding collections efforts, and any reputable agency will follow them”.
So, if you have decided to hire a collection agency, it is important to do plenty of research first to understand what separates the good ones from the bad. It is also important to find a collection agency that is experienced, professional and familiar with your industry. Always remember, not every collection agency will be a good fit.