You’ve taken the first step by deciding to turn over your collections process to an agency. Now you have to find one that will complement your business and leadership style. Where do you begin? Kinum, Inc. has some suggestions to help you find the right partner for debt collection.
Experience in Debt Collection
There is no substitute for experience. Agencies that have an established presence are more likely to have experienced difficult debt collection situations. Find out how long the agency has been in business, their success rates, and what industries they serve.
Research the agencies you are considering, including reviews on Google and social media sites. Don’t forget to check with the Better Business Bureau and the local Chamber of Commerce to confirm the company’s reputation.
Make Sure They Know Your Industry
There are many types of businesses out there. Make sure the debt collection agency you are considering understands your business. If they know the details of how your industry works, they can navigate the processes more efficiently than a general agency.
Collections laws differ from industry to industry, so choosing an agency that has experience in medical debt collection may not yield the same results if they were collecting for a school for example.
Ask for the Details of Their Process
Established debt collection agencies will have an organized process. This process will be flexible enough to work with most industries and rigid enough to provide structure to the system and yield consistent results.
Do they make an effort to keep the client relationship positive? Do they encourage mediation over the court? Is their style cordial or aggressive? Make sure the company’s style and values are consistent with your brand image and the message you want to send.
For example, at Kinum, we start by sending five friendly automated reminders from you. The next cordial reminders come from Kinum. After 110 days, the collections process begins, and we will handle the rest — including any legal intervention. Throughout the entire process, we keep things positive and polite.
Can You Afford the Fees?
Does the agency you’re considering charge success-based fees, flat rates, or prepayment before they begin? Ensure that you’re informed about all of the associated fees — including fees associated with cases that progress to the legal stage — and that you understand the fee structure for all cases.
Compare agencies carefully. If a company charges high fee percentages but recovers significantly more money, it’s worth the higher fees. Ask for industry analysis and compare the numbers yourself.
Find a company that has a portal for you to check on the progress of your collections. Connect with your point of contact to assist with any questions or issues that arise. Transparency is critical, and any debt collection agency should ensure that you have access to your accounts, point of contact, and collections tracking at all times.
Debt Collection for You
Once you’ve identified a debt collection agency, keep tabs on your accounts, and monitor progress. You’ll see the value of having the company on your side to improve your collection efforts. For more information, call us at 888-471-0280.