Collection agencies vary in the different types of services they provide and areas they specialize in. When searching for a collection agency that fits your needs, this can be a very difficult task. How do you know the collection agency is truly a good fit and will be able to collect on your accounts like they say they will? When you’re spending money in order to collect the cash that is already owed to you, it is important that you have all of the facts in place and have evaluated every collection agency as best as you possibly can.
There are three main areas in which you can start evaluating a collection agency that will help to narrow down your search: the number of claims, size of claims and type of debt.
NUMBER OF CLAIMS
Depending on the number of open claims you have, a certain collection agency may be the best fit for you. If you have a smaller number of open claims, a smaller agency would be a best fit, while a larger number of claims would be best suited to a larger agency. The reason for this is that a smaller number of claims typically expect to have a more personalized experience, which a smaller agency is more apt to be able to handle. On the other hand, a smaller agency may not have a team large enough to handle a large number of claims.
AMOUNT OF CLAIMS
Depending on the dollar amount of the claim, a collection agency might have certain approaches for each one. If you have all smaller claims, then a collection agency using automated process, such as an automated accounts receivable software that sends automated emails, would be a good fit. However, once your claims become a larger dollar amount, such as $25,000 or above, you would want a collection agency that can offer a specialized approach by calling and speaking directly to the customer. The best collection agency to find, especially if you have claims that range in amount, is one that can offer a mixed approach, using automated processes for small claims and personalized for larger.
TYPES OF CUSTOMERS
The types of customers you have will also determine the type of collection agency you should hire. First, depending on whether you are a B2B business or a B2C business will help you decide which collection agency best fits your needs. Some agencies specialize in one of the either. Second, your industry can play a huge role in which collections agency fits your needs. For example, if you’re in the medical industry, you will need an agency the understands the role of HIPPA and compliance rules around collections in your industry. If you’re in construction, you will need an agency that understands liens and other industry-specific collection processes.