Services rendered are much like a locomotive powering down the railroad tracks. Services paid is the coal that keeps the locomotive in motion. The last thing you need is an empty coal bin. To keep your business chugging along in the black it is standard practice to ensure your receivables are in fact received. There comes a point, usually after ninety days, where in house collection efforts are not sufficient and you realize that hiring a commercial collection agency is your next step. Here are some helpful tips to hire the commercial collection agency that is right for you and get your coal bin (paid in) full.
Confirm that the agency is a licensed debt collector for the state or states involved.
Ensure that the commercial collection agency is a member of the Commercial Law League of America (CLLA) and adheres to the Federal Debt Collections Practices Act (FDCPA).
Is the agency insured? This protects them and you from a lawsuit by the debtor if unfair practices have occurred.
Check references and reviews. The Better Business Bureau (BBB) can let you know if they are in good standing or have had any negative reviews. Ask for and check references for the agency. Inquire on their statistics and success rate.
First impressions do count. If at all possible do not hire a commercial collection agency over the phone. Meet them, visit their office. Get a feel for their level of professionalism and customer service.
Get it in writing. A contract protects both parties and should outline all fees, costs, etc.
Is it a good fit? Does the commercial collection agency that you wish to hire have other accounts the size of your business? If the majority of their accounts are far greater than yours you might not get the same level of service and attention that the big players warrant.
Follow these tips and your business can go chugging right along.
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