Thursday 25 April 2013

Collection Agencies - Selecting a Collection Agency

Inkasso Online: Collection agencies are not all the same.  There are a number of different specialized areas of debt collection including, consumer debt collection and commercial debt collection, regional and international debt collection and service offerings that range from managing accounts receivable to corporate asset investigations and even litigation.

When you are a business owner, finance manager, bookkeeper or CFO, it is a certainty that you will have to deal with unpaid accounts from customers.  Selecting a collection agency is essential to running a business and knowing how to select the right collection agency will ensure that you are able to recover the maximum amount of unpaid debt.
  
To start with, before you select a collection agency for your company, you will need to decide what is important to your company, other than the recovery, and inquire into an agency's ability to meet those needs.  For example, depending on your personal preference, you may opt for an agency that keeps in touch by calling and discussing each account and any action taken, or you may want them to be more independent and only contact you as needed.  This will depend entirely on how much time you want to allocate to being involved in the process.  Many business owners are very "hands-on" and like to control every process, while others prefer to step-back and let the agency take charge.
  
Discuss with potential collection agencies your various preferences regarding communication, involvement, et cetera; this will help you determine which agency best suits your style. Many collection agencies also have various reporting and even real-time data that can be viewed online.  Be sure to ask potential collection agencies what reporting tools are available for their clients to stay informed.
  
There may also be important distinctions regarding the types of debt collection a collection agency performs and what types they excel at.  You will want to ask if the agency only collects within a certain industry.  You will also want to inquire about their recovery rates for each sector of debt. After comparing all of the various aspects of a collection agency you should be able to select an agency that will best suit your individual preferences and needs and recover the most possible debt.

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