News Article

Debt Collection

Choosing the Right Commercial Collection Agency

By CreditMan Thursday, October 22, 2009

Choosing the right collection agency for your company is an important decision.

There is a proliferation of new collection agencies, and most of us feel overwhelmed by the number of calls we receive from agencies trying to solicit our business. For credit professionals, it is often difficult to know what to believe and who to trust. The good news is that there are questions that you as a credit manager can ask that will improve your chances of selecting a reputable and effective collection agency to represent your company.

Some of the questions you need to ask are listed below:

How long have you been in business?
How many employees do you have?
How many offices do you have?
Where are your offices located?
How long does it take your company to send the money you collect to us?
What percent of accounts sent to you end up being referred to attorneys?
What are your collection rates?
Are they negotiable? Under what circumstances?
Can you provide me with a list of companies in my industry with whom you do business? Specifically: Company name, Contact name and their Phone number.
Are you licensed and bonded?
Can you send documentation to me to support this?
In which states are you licensed?
If you have offices on the west coast, how are you going to collect from my east coast debtors?
What makes your agency unique? Are you willing to put that in writing?
Do you offer a free ten-day demand service?
How often will your salesperson visit me?
Do you publish a newsletter?
Are payments from customers maintained in a separate trust account?
Can you provide documentation of this fact?
What professional organizations do you belong to?
Can you send me a copy of their code of professional and ethical conduct?
How often will I receive updates? What form will these updates take?
Who will be handling my account on a day-to-day basis?
Who should I call when problems arise?

If credit professionals are proactive in asking and considering the answers to these questions, it will go a long way toward simplifying the credit decision. If potential vendors are unwilling or unable to provide this information, drop them like a hot rock.

Gladtrust Management Co Ltd - China is an expert specializes in credit report, risk management and debt collection.