How to Choose a Collection Agency
How to Choose a Collection Agency
For many, unpaid invoices and cash flow issues are just part of normal day-to-day life. Both businesses and private individuals are affected by non-payment. This can make it difficult or impossible for them to manage their own financial obligations.
Whilst alternative options exist for recovering debt, they are often too expensive, time consuming and provide few benefits. A debt collection agency, on the other hand, provides an effective low cost service.
We list some of the key points you should look for when choosing a recovery agency to collect money.
How To Choose a Collection Agency – 10 Key Factors
- Reputation – the subject of debt collection is a sensitive one. Knowing which agency will do a good job often depends on their reputation. When looking to find a debt collection agency, you should always examine customer and client reviews. This will give you a clear idea of what they are like to work with.
- Cost – Cost is always a factor to consider. As well as the obvious, you should always scrutinise the price offered even if it is low. Many agencies will sign clients up to lifetime contracts, then demand upfront payment. Or, they may quote a low amount before instigating a drip payment plan. You should have a clear idea of the costs before proceeding.
- Awards – Has the agency you are considering has won any awards? If so, it could be a sign that they provide a good service. Combine this with the reputation to get a clear idea of how the business is seen in the industry.
- Accreditations – As well as awards, a collection agencies accreditations can be a sign of their professionalism. You should never choose an unregulated agency. You have no way of knowing what tactics they employ in their collection efforts. The person who instructs a debt collection agency can also be held accountable for their actions. Choosing an accredited and regulated agency should always be a top priority. Frontline Collections are regulated by Credit Services Association (CSA).
- Effectiveness – Before committing to any service, you need to know how effective it will be. Spending time researching the agency’s effectiveness can help you find a collection agency.
- Specialities – Many agencies specialise in a specific area of debt recovery. Some focus on recovering business debts, others on credit services, and others specialist in international debt. Frontline Collections is the leading agency for private debt collection.
- Size – the size of a debt recovery agency can also have an impact on people’s decision making. For example, a large business might be preferable due to its ability to handle more debts. In contrast, some creditors like the idea of smaller agencies in their own area.
- Process – It is important to enquire about the debt collection process the company you are considering will use. As mentioned, if an unregulated or unlawful process is in place, the creditor can be held accountable. You can confirm this process by speaking with the agency or reading client reviews.
- Security – It is often important to consider how personal data will be handled by a debt collection agency. In some cases, a new client may ask an agency for an explanation of how their data may be handled.
- Benefits – As well as the obvious benefit of recovering any owed money, many agencies provide better features than others. For example, Frontline Collections provides clients with access to an online portal, which allows them to monitor their case 24/7.
For more information on Frontline Collections, speak to one of our friendly debt collection experts now.
How to Choose a Collection Agency – Frequently Asked Questions
What is the average collection rate for a collection agency?
Each case of debt collection must be judged and priced according to its own unique circumstances. No two cases are alike and each has its own circumstances. As such, no cost can be estimated until a debt recovery agent has performed due diligence.
Frontline Collections operates on a commission based pricing structure, with rates starting from as little as 8%. Speak to one of our experts today for more information.
What makes a good debt collection agency?
When searching for a debt collector, there are many factors to determining if they are a good fit for you. The main things to consider are reputation, accreditations, awards, and effectiveness.
What should I look for when hiring a collection agency?
Before committing to one course of action, you should always take all factors into account. As well as the reputation, accreditations and awards an agency has received, you should also look for what they specialise in. For example, Frontline Collections are regarded as the UK’s leading private debt collection agency. We also provide leading commercial debt collection agency services for small businesses.
How long does it take to collect a debt?
Depending on the individual case, collection times can vary. Some cases will require more work, whereas others may be close to the collection at the beginning. For more information on the collection process, speak with one of our debt recovery experts now.
Can an international debt be collected?
Specialist debt recovery agencies can enforce collection globally. Frontline Collections is one such agency. We have a network of trusted international debt collection agents that can recover debt from virtually anywhere in the world.