Ever heard of CBE Group, IC Systems or any other debt collector? Dealing with delinquent accounts and getting people to cough up the money they owe you is no fun. Not only does it drain one’s time and patience, but also one’s resources.
Therefore, the best way to deal with this problem is to bring a professional or an expert on board. Debt collection agencies do a wonderful job of handling the daunting task of getting people to pay their dues or debts. Such recoveries are often done in an efficient and quick manner, whilst following the debt collector policies and keeping the image of your company intact.
Now, every business is unique and so are its needs or requirements. Hence, just because a debt collection agency is working well for another company doesn’t necessarily mean that it would be right for your company too! You will need to look for collection agents that are capable of catering to your needs and fulfilling what they promise to do.
There are many options to choose from here: IC Systems, Midland Credit Management or MGM, CBE Group and so on. This decision is very important because it can make or break the collection task. Therefore, you should spend some time researching and weighing your options before whittling down your list to the ultimate one.
Debt collection agencies generally specialize in certain areas. Be sure to find these areas out when you’re conducting your research so that you can match them with your own requirements and get them on board if they measure up well. If the debt collection agent has been dealing with businesses from the same industry that you’re in and they enjoy a great success rate for recovery then chances are it would prove to be useful for your company too.
When you are selecting an agent from the plethora of collection agents, you should ensure that the agent you’re selecting possess insurance. A lot of times, even when you take precautions, there are chances of the collection agent acting in bad faith, thus resulting in the debtor suing the collection agent. Sometimes, it may so happen that the debtor takes your company to court as well along with the collection agent. Thus, to avoid getting in the soup it is important to make sure that the agency has a protective insurance plan in place to begin with.
Also, don’t forget to find out about the contingency costs and fees charged by the debt collection agent. Whilst some agents charge a flat fee (usually a very small amount) irrespective of the outcome, others charge contingency costs. The latter is more common. Here, the agents do not charge anything in case they fail to recover the debt and if they do manage to recover it then they charge anywhere between 25-40% of the debt, depending upon the experience they have and the reputation they uphold.