How to Hire Top Collection Agencies

When small businesses offer product or services on credit, they are always the risk a customer may fall past due in payment. If a business is unable to collect from the past due customer then the next move is to hire the best collection agency for small businesses.

Many small businesses will often ask, “How do I find the best debt collection agency”?

It can be difficult to find a collection agency due to the fact that collection agencies provide services that are rarely discussed compared to other popular business services such as marketing or bookkeeping.

Debt collection agencies can provide an important service to small businesses who are struggling with delinquent customers. By collecting payments from past due customers, the best collection agencies can provide increased cash flow from customers who seemed like impossible to deal with.

They are many considerations to hiring the best collection agency for small business.

How much does top rated collection agencies charge?

A collection agency who has experience in collect debt for small businesses will work on what is called a contingency rate. The collection agency will not charge upfront fees but will only keep a portion of what is successfully collected for the client.

The contingency rate will typically fall anywhere between 15-50% depending on the size of the debt being placed, the age of the debt, and what industry the client operates in.

While this may seem complicated, the best collection agencies can typically give a contingency rate quote within minutes in order to help make a quick decision on how to move forward.

Traits of the Best Collection Agency

If someone talks to enough collection agencies, most will explain how they will collect the most money for your business. While this may sound great, knowing what to look for in a collection agency will save a company time and money.

Industry Experience– A small business that provides HVAC services should not hire a collection agency that represents a majority of medical offices. The approach to collecting from each set of customers is different.

If a collection agency claims to have represented companies within the same industry, ask for a few referrals. The referrals will be able to give you a honest opinion on the collection agency which is invaluable insight before making the hire.

Customer Service– A collection agency that does not respond quickly to your inquiry about hiring them is a bad sign of things to come in the future. Top rated collection agencies will be able to provide answers fast and address any concerns you may have. If a collection agency isn’t providing high levels of customer services to earn your business then you can expect it to be worse once they know they have you as a client.

Resources– The best debt collection agency will have numerous resources to help assist with collecting from delinquent accounts. The number one resource is experienced debt collectors who know how to negotiate payments. Furthermore, a collection agency who offers online portals for reporting will make life easier for clients to see the progress in collections without having to call in for updates.

Reviews– While online reviews can be helpful; many 1-star reviews are left from debtors who are just unhappy a collection agency is asking for money. Pay more attention to the business owners who are leaving reviews based upon the experience with working with the agency.

Longevity– If a collection agency has been in business less than a year then they are very little history to judge them by. The best debt collection agency for small business will have been in business for several years. That ability to survive in such a competitive industry usually means the agency is reputable and has a debt collecting process that is proven to be productive.

If you have a small business who has been searching for a collection agency to help recover the money owed, CollectionAgencyMatch.com is here to help.

Get a free quote in less than 10 minutes!