Category Archives: How To Choose a Commercial Debt Collection Agency

Choosing the right commercial debt collection agency

Don’t View Your Collection Agency as a Commodity

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When choosing a commercial collection agency, consider this your top priority: Rate of recovery.

Don’t select a Commercial Collection Agency based on the rate they’ll charge you. Cheaper isn’t necessarily better. Quality collection agencies typically cost more and there are good reasons for that. Consider the following:

Licensing

Not every commercial collection agency is licensed. Those that invest the time and money into obtaining and maintaining a license are held to a high standard. They operate within the laws of their state, they monitor their collectors and they invest in the resources it takes to offer top-notch performance and record keeping. It’s not cheap to obtain a license, but it is to your benefit to partner with agencies that make licensing a priority.

Professional Debt CollectorExperience

Collectors with experience and expertise in the field cost more. And they are worth every penny. Our average years experience for our collectors is 18 years.

Account Management

Many collection agencies take on the easier, big money accounts and leave difficult accounts to an attorney. The minute the attorney takes over, your rate increases. Essentially, the collection agency collects the easy accounts while getting paid for the tough ones they sent to the attorney’s office. Doesn’t sound fair to you, does it?

Agencies that employ a team to work an account will address the easy and difficult cases, avoiding the use of an attorney unless it becomes inevitable. On the one hand, there’s an expectation that they’ll lose money on those smaller, easy accounts – but on the other, they’ll win the long-term loyalty of their customers with greater overall success on both large and small accounts. It’s a partnership of trust that can potentially last for years bringing greater gains to both the agency and the customer.

Remittance

The agency that holds on to your money is collecting interest that belongs to you. Quality agencies remit quickly. It certainly costs the agency more to remit on a weekly basis, but this puts your money in your account working for you more quickly.

Communication

Technology costs money. But utilizing cutting edge software keeps the customer informed, which is critical to the process of successful debt collection.

The bottom line when choosing a commercial collection agency is dollars that come back to you. Net recovery is the number that is most important. Before you inquire about their percentage rate, ask the following:

  1. Are they licensed?
  2. What level of experience do the collectors have?
  3. How do they handle small balance accounts?
  4. How often do they remit?
  5. How many collectors will be assigned to your account?
  6. What are their methods for communication?

Quality commercial collection agencies are likely to cost more, but they also collect more for you.

C2C Resources: Minimize Debts – Maximize Profits

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Shaking HandsWith over 70 years of experience in commercial debt collections, at C2C Resources, we pride ourselves on serving over 25,000 clients here in the U.S. and abroad.

Our powerful combination of Profit Maximizer and our InfoMax Collection System helps companies effectively collect debt in-house. We work with our customers to minimize their debt, while maximizing their profits.

We educate our customers so they can manage their in-house collections and streamline their processes for the best, most profitable outcomes. With us you’ll learn:
•    Best practices for collection calls
•    How to write effective collection letters
•    Communication that yields results
•    Record-keeping
•    Avoiding litigation
•    The basics of extending credit
•    Improving cash flow
And much more

For more information about our Commercial Debt Collection Agency, please visit our website: C2C Resources.

Why Do Some Collection Agencies Charge More?

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Dollar sign, Collection Agencies, C2C ResourcesCollection Agencies do not all operate in the same way

We all like a good deal. We love to save money. So, while it’s tempting to choose a Collection Agency charges you less, it’s the net recovery rate that really matters.

Licensing
There are some key factors that drive the rates a collection agency charges. For instance, it costs time and money for an agency to obtain the proper licensing. Since licensing protects you and your business, it’s worth it to pay more.

Collectors and caseload
You’ll also pay more to partner with an agency that uses only experienced collectors. High caliber collectors will cost a little more but you’ll enjoy the benefits of a higher rate of collection. Savvy collection agencies will carefully restrict a collector’s caseload, too. By doing so, all cases, large or small, received the attention they deserve. This strategy requires that an agency hire more collectors and possibly charge a higher rate, but fewer accounts are turned over to legal.

Remittance
Some collection agencies that charge less do so because they only remit monthly. They hold onto your money and collect interest on it while saving themselves the expense of weekly remittance. Agencies that remit weekly may cost more but you get your money much more quickly.

Information
Collection agencies that invest in the personnel and technology needed to keep you in the loop on your account will also cost more to partner with. The type of software required to make your information available to you has a price tag.

When looking for the right agency, ask the right questions so you understand their rates. Are they licensed? Are their collectors experienced? How do they manage small balance accounts verses large ones? Do they remit monthly? Weekly? How many collectors touch each account? What are their communication policies? Do you have access to your information when you want it and need it?

You’ll pay more for the qualities that put an agency a cut above.

 

Is Your Commercial Collection Agency Licensed?

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How can you know for sure that you collection agency is a quality company? Ask if they are licensed!

Not all Collection Agencies are created equal. There are many top-notch agencies all over the country and a whole bunch of sub-standard ones. A quality collection agency will obtain a license to do business if their state requires it.

US Map, C2C Resources Debt Collection AgencyOver 20 states do require commercial collection agencies to be licensed. Oddly enough, many agencies ignore the law!

The issue of licensing should be top of mind when choosing a commercial collection agency. The reasons are simple:

1. It’s the law.
The laws vary from state to state but some requirements may include: registration and testing of agency personnel, audit of collection procedures and letters, agency bonds, and most importantly trust procedures and audits to make sure that your money is safe.

2. Your reputation can be affected.
In your customer’s eyes, your collection agency becomes an extension of you. You want collectors to represent you in the most professional, ethical way possible. A licensed collection agency is held to a high standard and will take pride in how they do business.

3. You may be liable.
A Collection Agency that does not adhere to the laws can be a liability. Your debtor could sue you both based on the actions of your Collection Agency. A licensed agency will operate within the laws in the effort to collect on your behalf.

A Collection Agency that is licensed can provide a copy of their state issued certificate easily and what’s more, they’ll be proud to do so! If they can’t, ask them what the requirements are for the state in which you are doing business. Any collection agency that cannot answer that question isn’t the one for you. Keep shopping!

Protect yourself and your business by choosing a collection agency that is licensed.