Are your customers not paying their dues and are avoiding your collecting efforts? Do you feel that it is time to seek external help to collect money from the debtors? All of us have some business to run and we will not have the necessary time to deal with offending accounts as it will eat up a lot of our time and resources. So, what can be done about this? If you would like to save your time to devote more into business and also not run out of patience, then you will have to look out for money collecting agencies. Not all the agencies will be equal and each one will be having some flaw or positive. Hence, you need to carry out a thorough research before choosing one for your business. The following are the tips you can try out when choosing a partner for money collection.
- A thorough research
The debt recovery agencies offer a host of services and might be a specialist in one or two services. You need to find out what they are most comfortable with. Some might be able to collect the funds from large companies, some might be able to help out small businesses and others might help in collecting petty cash. So, it is important that you find out what sort of debtors the collection agency deals with most before hiring an agency.
- Check its credentials
It is very important that you hire an agency that is bonded and insured. They should abide by the laws of the land and must be a certified one. There is no point in choosing an agency without having the necessary documentation as you are entrusting them to deal with solid cash. Hence, make sure that they are real collection agencies before handing over the collection job to them.
- Look for insured agencies
No matter you are looking for small business debt collection Melbourne or agencies that only deal with big-time businesses, you need to ensure that they are licensed and insured. Check out the proof of insurance before hiring one for the job. This way you will not have to face any serious consequences if the debtor drags you and the agency to court. By choosing insured collection agents, you will not need to worry about the liabilities that the agency creates for getting back the funds. Some agents might be rude to the clients in order to get the money out of their pocket soon.
- Check out their costs
Once you have located a few agencies that would do a good job of collecting arrears, you need to check out their costs. Look whether the agency is charging you a flat fee or contingency fee and choose one that suits your budget and needs.