Every business owner has to face it at some point – your late accounts aren’t going to come in willingly, which means you have to step up your in-house efforts or hand over the task to a professional.
For most business owners, the decision to hire a third party isn’t one that is made easily. While there might be some fear involved in the process, you should know that once you’ve found a suitable partner the outcome is a very positive one.
There are many reasons you should seek the assistance of a professional, not the least of which being that you need to spend your time making money instead of chasing down unpaid invoices. Once the decision is made, the real work begins – you have to wisely choose a debt recovery expert.
First, do your research by asking around. Who are your peers using for their debt recovery solution? Make sure you ask people who are in similar industries because many debt recovery experts stay in a narrow area. For instance, there are some organizations that only go after auto debt while others will only work in the housing industry. You want a company that will hit the ground running and not have to come up to speed and learn a new industry.
Once you’ve come up with a list of what you think are prime candidates, start asking for verification that they are legitimate. They should be licensed and insured. You should also check their record to make sure they aren’t the targets of lawsuits regarding their collection practices.
You want to hire the firm that can track down every debtor; even those who have move out of town or out of state and think they’ve bucked the system. If the agency uses a skip tracing, you’ve got a better chance at getting back every penny from every debtor.
Don’t get taken by a low price only to find out there are hidden fees to account for later. Every company will likely have a different price and different contingency cost. However, the best price isn’t always the best choice, so don’t let that be your only worry.
Some companies will charge a flat fee, which is just a pre-collection fee that is probably quite small. A contingency cost is a very typical occurrence in the debt recovery industry and involves varying percentages based on how difficult the debt is to collect. For instance, debts that are more than a year old are the most difficult to collect, which means the debt recovery company will keep more of what they collect than they would for a newer debt.
As a member of the Association of Credit and Collection Professionals, Omega-RMS, llc., passes the test for companies looking to get the best in the industry on their side. Omega’s solutions make sense because we know how to recover your money while staying in the good graces of your clients. Give us a call and find out how we can connect you with your long lost accounts.