Collection agencies are valuable allies; they have an important role to play in the fiscal life of most commercial business. They can be excellent fixers of specific, bad-news debt problems, but what they’re not is a cost-effective alternative to daily in-house A/R management — not with a 25% contingency fee (or higher). That’s an expensive way to
manage garden-variety receivables!
Collectors are your go-to helpers when in-house “chase” routines come up empty-handed. Think of them as relievers in your bullpen; they can save some games youthought were lost. That’s right. An experienced, reputable agency will bring you dollars you’d never have gotten on your own, so you have nothing to lose and everything to gain from building a relationship with the agency of your choice.
And the choice is yours. Check out the Web and vet the wide variety of local and national collection agencies for yourself. Make a phone call or two. Speak to corporate sales managers and determine the best fit for your needs. Qualify them. Ask questions; get answers. An agency rep. who doesn’t meet the phone test probably represents an agency you don’t want to get into bed with.
You’re the customer in this situation; you’re looking for a business partner who can pull the fat out of the fire. Even if you’re just a small fish with a single small-fish account to assign, a good agency will want to win your confidence. Your business matters – for the longterm, not just your immediate collection need today. You’ll be treated like a somebody because you are a somebody. And also because collection is a crowded, competitive marketplace. That puts you in the driver’s seat.
Collection agencies want reliable, organized clients, so the manner in which they deal with cold-call suppliers inquiring about their services speaks volumes about how they do business generally. Remember, even a debtor you hate and would happily consign to the lower reaches of Hades still has to be dealt with professionally. When you work with a collection house, your company’s good name is also on the marquee. So choose wisely.