Don't let your outstanding payables hinder your growth

Pioneer Blog


How to Choose the Best Commercial Collection Agency

11-07-2012

 

In an ever-changing economy it is best to know who you are outsourcing you past due payables to. A good rule of thumb is to always contact the collection agency you are looking to use and check references. We hear every week of another rogue collection agency either acting outside of the law, or not paying their clients.

When it comes to contacting a commercial collection agency there are two common questions.

1. When should I contact an outside commercial collection agency for help?

2. Which commercial collection agency is right for my business?

When it comes to the first question the best answer is when an invoice reaches 60-90 days delinquent with no payment
from your customer.

Let’s explore the second question a little further…

The key issue regarding average recovery rate is to find out how successful a commercial collection agency will be a recovering your debt.

You should ask questions like recovery rate, fee structure, and compliance. If their recovery rate is low (check with references), fees are high, and they have a public record of non-compliance with local state and federal laws, keep looking. You should also ask the question how and when you will be paid so you know when to expect a check.

Finally, any collection agency that has been around for a while should be able to provide you with references of other companies that they are working with currently. By checking these references you are able to tell if the collection agency you are contacting is a professional and ethical company. This will allow you the peace of mind that your customers you turn over to the collection agency will help, not hinder your business and keep your companies name clear.

If you have any questions please feel free to contact us about our commercial collections services.




Please call 855.712.1999 with any questions or if you would like to make your payment over the phone

Proud Members Of

Licensed, Bonded and Insured