Choosing the right debt collection service to suit your needs means asking yourself a few simple questions...
Would you like a flexible approach, with assistance as and when you need it?
Maybe you only have a small number of debtors who are at risk of default, or maybe you simply need help with chasing one payment that's proving particularly difficult to collect. If so, working with a debt collection agency on a case-by-case basis is probably best for you.
As for fees, it's wise to choose an agency that works on a no collection, no commission basis, so you won't have to pay a joining fee or make an up-front financial commitment. As the agency only gets paid based on results, it's in their interest to recover the debt as quickly as possible, and you don't have to worry about costs escalating if it takes longer than expected to get payment from the debtor.
Do you need more regular support with debt collection?
The next level of service is for businesses and organisations that more frequently need help to recover unpaid debts. In return for a more substantial commitment, you should expect additional features and benefits from the debt collection service, such as preferential commission rates, a service level agreement (SLA), more detailed progress reports and smart online analysis tools.
The agency should also be able to offer you tactical support for your finance team, perhaps to help them clear a credit control backlog or during particularly busy periods such as financial year-ends.
