Many new businesses try to cut costs by establishing their own in-house debt recovery departments, but find out quickly that their efforts are in vain. Sometimes, those efforts lead to costly lawsuits that they could have avoided if they’d only partnered with a professional debt recovery agency from the beginning.
The decision leading up to partnering with a debt recovery agency often comes with some trepidation, but once all the obstacles are overcome, organizations need to do their research and find the best debt recovery firm for their industry.
A good place to start is by looking at the record of the agency. You need to know that they are legal, licensed and legitimate. Ask for a copy of their licenses, certificates and proof of insurance. Furthermore, inquire about their history of lawsuits or any fines they’ve been court-ordered to pay due to their collection practices.
One of the easiest ways to determine if you’re on the right track is to determine if the agency is a member of the Association of Credit and Collection Professionals or the Commercial Law League of America. No disreputable company is allowed into either of these groups.
Talk to other organizations in your industry and ask their opinion. When you’re building a list of potential debt recovery partners, bounce the names off of your colleagues and keep notes on the pros and cons on each. When you’ve narrowed down the list, talk to the clients of each of the agencies and get their take on the agency.
When it comes time to do business with an agency, be prepared to tell them about your current debt collection practices. Are you accustomed to waiting 90 days before you send an account to a third-party collection agency? A reputable firm will help you decide when it makes sense financially to turn over your delinquent accounts to them. Obviously, the more delinquent the debt, the less chance you have on recovering it.
Professional debt collectors have strategies that can determine which accounts need more attention which will prevent them from falling into delinquency. They also have the expertise to go after those long-lost accounts that appear to be going into a write-off situation.
Another aspect that needs to be considered is that some companies have very technical business processes, which is why you need to choose a debt recovery agency that has experience in your specific industry. Some debt collection accounts require the expertise of a professional who can look deeply into the issue and reasonably dispute any claims against the debt.
Meeting all the criteria above is Omega-RMS, llc. Omega is licensed and bonded to do business in every state, which means none of your debtors will be out of reach for collection efforts. As a member of the ACA, Omega-RMS meets all the criteria of a debt recovery company in good standing, capable of delivering quality solutions that leave your company satisfied and your clients feeling respected.