Debt-collection is one of the most undesirable, but necessary tasks of doing business. Your company may appear to be successful when you look at sales, but if your customers aren’t paying you on time, you could be in trouble. Without a healthy and consistent influx of money, businesses can struggle to pay employees, purchase inventory, and pay for operating expenses and overhead. In today’s post from Partners Financial Services, we want to explain how a third-party collection agency can help If you’re having trouble collecting from past due accounts. And, if you’re thinking of hiring an agency to help, there are a few things you should consider. Keep reading and then give us a call to learn more about how Partners Financial Services can help you.

It’s Time To Hire a Collection Agency

Debt-collection is an on-going task for every business. While some may choose to take on this responsibility themselves, you’re much more likely to receive payment if you enlist the help of a collection agency. Relying on third-party services for debt collection frees up your time and ensures regulations surrounding the Fair Debt Collection Practices Act are being followed, provided you are working with a trustworthy and ethical agency. 

An experienced collection agency has the tools needed to get the job done quickly and effectively. They are experts at tracking down consumers that are unresponsive and can use credit-reporting services to improve debt recovery. 

The third-party debt collection agency you choose to work with is a very important decision for the financial health of your company. Of equal importance is how that agency performs its duties while preserving the customer relationship. So how do you choose from the thousands of debt collectors currently operating in the U.S.?  It’s not as hard as it sounds — you simply have to do your homework to make sure that the agency you are choosing has the experience and the way they approach debt recovery is a good fit for your company. 

What To Expect

Before you decide to hire a third-party debt collection agency, it’s important to take a moment to think about how you’ll evaluate whether or not a particular agency is a good fit for your company. Don’t just sign up with the least expensive one out there because you often get what you pay for. That doesn’t mean that you have to use the most expensive one either. Instead, look for a trustworthy company with both experience and a good reputation for helping clients. If you’re searching for a collection agency to help your business, there are a few things you should be able to expect: 

Experience

In the highly-regulated industry of debt collection, it’s important to work with an agency that has experience and is knowledgeable of the laws specific to your state. Check to see how long the company has been in business and whether or not they have worked with others in your industry. You also might want to consider checking the company’s Better Business Bureau rating. This can be quite helpful for identifying companies with a history of problems. 

Proper Credentials

Rules for debt collection vary by state, and not every debt collector is licensed to practice all states. Before you put your trust in someone else’s hands, make sure that they are licensed for the state in which they are doing business. You can also get a feel for how reputable a company is by checking to see if they are members of any professional groups or associations.

Customer-Service Focused

Debt collectors may have a bad reputation, but you never want to resort to intimidation and scare tactics to get the money you’re owed. It’s important to make sure that your third-party collection agency understands that they must represent your company with professionalism and protect your public image. A debt collection agency that has a reputation for harassing customers or using unethical means for getting people to pay is no company that you want to be doing business with. 

Security

Due to the sensitive nature of the information involved, it’s extremely important that your collection agency has secure methods of handling communication and monetary transfers. They should use a secure web-based portal for receiving payments, and every precaution should be taken to protect personal client information.

Credit Reporting

Some third-party collection agencies are classified as data furnishers, as defined by the Fair Credit Reporting Act (FCRA). This means they have the ability to furnish both debt collection and loans placed for loan servicing to Credit Reporting Agencies. Not all debt collection agencies have this ability, but for those who do, it can prove to be a very useful tool for improved debt recovery.

Contact Partners Financial Services

If you’re looking for a third-party debt collection agency you can trust, contact Partners Financial Services. For over 25 years we have helped clients who need a firm but ethical and professional approach to managing their accounts receivable and loan portfolios. We use secure, state-of-the-art technology and proven methods for locating consumers and recovering the money you’re owed. Visit our website to learn more about our services, including debt collections, student loan servicing, payment processing, and direct deposit remittances.  

 If you’re looking for an ethical, consumer-driven debt collections partner, contact us today. Our goal is to provide the best customer service for both our clients and consumers.