Tag Archives: collection agency

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.

 

3 Ways To Make Debt Collection Calls Easier

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Calling your customer about a past due invoice can be one of the most challenging aspects of operating a business. It’s not unusual for aged accounts to pile up because business owners are uncomfortable making debt collection calls. There is a way to ease some of your own apprehension though. By doing the following 3 things, you may find the calls just a little easier to make.

1. Write down excuses

Before you pick up the phone, sit down and list out the most common reasons and excuses for non-payment you’ve heard in the past. Once it’s completed, think about your possible responses and write those down next to the excuse. Think about what worked before and what didn’t.

As an example, I’m sure you’ve heard the excuse, “The check is in the mail.” And while you hope that’s the case, you can’t know for sure, so you’ll want to press for a more concrete verification. Consider a response like, “That’s good! May I have the check number, amount and date sent so I can make sure it posts correctly?” A response like that isn’t confrontational and may result in a speedy debt recovery.

Silly as you may feel, consider rehearsing your responses out loud. This will help you think on your feet throughout the conversation.

2. Know the details of the past due account

Have the following information at hand in advance of the collections call. This will help you maintain control of the call.

How much is owed?
What are the terms of the sale?
What did they purchase?
When was the payment due?
Are there numerous open invoices?
What is their payment history with you?

3. Put yourself in a positive state of mind

A positive disposition and friendly tone of voice will help to set a good tone for an uncomfortable collection call. Take a few minutes to think positively and prepare your self for a professional, pleasant and respectful conversation. Set yourself on a slow and steady course, prepared to leave ample time for listening to your customer’s point of view without interruption.

Half the battle of making a successful debt collection call is the preparation you do before hand. Feeling like you have all your bases covered before you begin the conversation will set you more at ease and help you stay in control.

How about it? How do you prepare for collection calls?