Choosing the Right Debt Collector: 4 Key Tips for Success
When it comes to debt collection, finding the right agency or individual need not be daunting. By understanding what to look for and what they can offer, the process of selecting the ideal debt collector becomes much simpler.
1. Seek a Collaborative Debt Collector:
Look for a debt collector who is willing to partner with your organization rather than pursuing their own interests. A valuable debt collector will work towards enhancing your bottom line by employing methods tailored to your specific needs. This may involve developing an accounts receivable system customized to your company’s requirements.
Opt for a debt collector or agency that evaluates your accounting processes and suggests ways to improve in-house collections, ensuring a seamless integration of debt recovery efforts.
2. Emphasize Customer Service:
In the past, debt collectors were often associated with aggressive and unpleasant tactics. However, the industry has evolved, and modern debt collectors have adopted a more friendly and helpful approach. Choose an agency that reaches out to customers with delinquent accounts in a supportive manner, offering various ways to catch up on payments.
Look for debt collectors who assist customers in creating personalized payment plans that fit their budgets. They should provide multiple payment options, including checks, money orders, or credit cards, and offer convenient methods such as mail, phone, or secure online payment systems. The debt collector should extend their approachable attitude not only to customers but also to their staff.
3. Focus on Return on Investment (ROI):
While the percentage charged by a debt collector is essential, it’s not the sole factor determining their effectiveness. Evaluate each collection agency or debt collector based on their ability to increase your profits by collecting the most money.
Consider the recovery rates and success with difficult accounts, not just the fees. Some debt collectors may charge lower percentages but concentrate on easy-to-collect debts, while others with higher fees may deliver better results, making their ROI more attractive in the long run.
4. Gather Reviews and Referrals:
Before finalizing your decision, inquire about the performance of the potential debt collector with other businesses, especially those within your industry and of similar size. Public reviews online can provide valuable insights into their effectiveness and customer satisfaction.
Ask for referrals from other local businesses, seeking recommendations from those who have previously worked with the debt collector you are considering. Consult business contacts, your local Chamber of Commerce, and the Better Business Bureau to comprehensively understand each debt collector’s methods and success rates.
Selecting the right debt collector can become a smooth and productive process by following these four tips. Take the time to compare various options, ensuring you choose a debt collector who will act as a true business partner dedicated to your company’s success and improved cash flow.
MCA is a third-party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect it! Why not try and re-coop some of your past due accounts with no out-of-pocket expense?