With more than 5,000 debt collection companies from which to choose, you’ve got some research to do if you want to partner with the right one. Before you make a decision, consider a handful of guidelines to follow to help you find the one that’s right for you.
One thing to consider is your industry and looking for collectors that have worked within that industry. If you’re in the healthcare field, you wouldn’t necessarily want to work with a collector that deals with collections related to the automobile industry. You can significantly reduce the field of finalists by simply choosing collectors who have experience with or deal exclusively with your industry.
Your decision to take on a debt collection agency to help you regain some of your receivables probably didn’t come easy. There is a stigmatism hanging over the collection industry, which is caused by collectors that don’t comply with rules and regulations that control how debt is collected. For this reason, you need to make certain that your finalists have clean records. You don’t want a disreputable agency to get anywhere near your clients.
You probably want to keep costs in mind, but if you’re simply shooting at the lowest bidders, you’ll get what you pay for. This doesn’t mean that the most expensive agencies are the best, but it pays to choose reputable collectors over the ones that save you money.
While you’re checking into the background of the collectors, look to see that they are fully licensed and can operate in each and every state. Also, make sure they’re bonded and insured. This protects your company should anything go wrong in the collections process.
Look at the age of your debt. If you have collections that are beyond 90 days late, you’ll need a agency on your side that can handle older debt as opposed to receivables that are only a couple of weeks late. These agencies operate differently and you’ll probably pay more for the one that can collect on really old debt.
Not all collectors are created equal. Some will only want to talk to you on very rare occasions, which might be fine if everything is going smoothly. However, most companies want to have an open line of communication with their collectors. Interviewing the firm will provide you with the type of communication you’ll be getting once you partner up.
Ask for audited financials. Leave no stone unturned when it comes to this part of the selection process because you don’t want an agency that uses its clients as its main source of capital; an audit will reveal this to you.
Omega-RMS, llc. has the kind of reputation that keeps companies coming back to them year after year for their collection needs. As a member of the Association of Credit and Collection Professionals, we are more than capable of representing you when we reach out to your clients to collect on debt. The mark of a good agency is one that makes the transaction positive for all parties involved, which is what Omega strives to do.