4 Things to Look for in a Collection Agency
Categorised in: Our Blog
With the state of debt in the country, it’s only a matter of time before your business will need to partner with a collection agency. But with so many options, you may not know how to pick the right one. Here are some characteristics of the right collection agency:
1. They Will Boast a High Recovery Rate
If your third-party debt collection agency or in-house collection department can’t recover your revenue, then they’ve wasted time. And time is precious in this industry. Statistically, debt grows harder to recover with each passing day. That’s why you need to act fast when your customer doesn’t pay.
At Summit A*R we boast a recovery rate that’s in many cases twice the industry average. You can use our online accounts receivable turnover ratio calculator to gauge the effectiveness of your collection efforts. Bookmark the page for future use and give us a call to learn how we can help boost your recovery rate.
Get in touch with Summit A*R if your company has ever wondered – what is accounts receivable turnover ratio and what can we do to improve it? We have several strategies that can help you collect your receivables.
2. They Will Preserve Your Reputation
You may have read the articles, watched John Oliver’s “Debt Buyers” episode on HBO, or seen the news stories on your TV that discuss some of the unethical practices followed by certain debt collectors. While such disreputable debt collectors are in the minority – you want to avoid them at all costs.
Think about it. In the digital era, your reputation is paramount. If the agency you’re partnering with uses unethical practices, your customer may never do business with you again. Worse, their complaints may hurt your standing in the community or give you legal headaches.
Studies suggest that most customers read online reviews before doing business. Interestingly, many of them read negative comments first. Having your business associated with a brash commercial collection agency can dent the years of hard work you spent cultivating your brand.
Our commercial debt collection agency is proud to follow the “P.H.D. Philosophy” (Preserve Human Dignity). This means that we use a diplomatic approach when engaging with your debtor. Our goal is to deal with them firmly, yet with dignity and respect.
We can’t speak for other agencies, but we don’t use threats, misrepresentation tactics, robocalls, harassment, or other negative practices to pressure people into paying what they owe.
But don’t take our word for it. Check out some of the testimonials on our website from our happy customers to learn more about how we do things differently. And read about our affiliations to learn more about our reputation.
3. They Will Be Cost-Effective
It’s pointless to work with an agency if their cost is too high. And when examining the cost of doing business with a debt collector, you must look at the bigger picture. If the account is lucrative, a collection agency may agree to work with you but with the condition that you guarantee them more work. You may be penalized if you don’t meet these minimums. Others may charge excessive fees upfront. Others still may only prioritize easier accounts, letting your more difficult accounts grow harder to recover.
At Summit A*R we have no mandatory minimums. Our fees are transparent, and we work on a contingency basis, so you only get paid when we do. Get in touch with us today to learn more about the cost of partnering with us.
4. They Will Be Familiar with Your Industry
Some agencies take a one-size-fits-all approach to debt collection. This is ill-advised because certain industries require different approaches for debt recovery. For example, you can’t recover revenue from a customer behind on luxury car payments in the same manner as you would from someone in medical debt. Understanding the nuances of each industry makes a collection agency more effective and it preserves your reputation.
At Summit A*R we have over two decades of experience in the business. In this time, we have worked in dozens of industries, developed valuable affiliations, and fostered important relationships with satisfied businesses across the United States. Here are some of the services we provide:
- Medical and Dental Collections: We’re 100% HIPAA-compliant and boast double the national recovery rate. Our no-complaint policy, ethical practices, and unique understanding of the industry make us a good partner for health care providers.
- Veterinary Collections: We have over 23 years of experience helping veterinarian practices of all sizes recover lost revenue. Our friendly yet effective tactics help veterinarians get paid what they’re owed in an industry where reputation is important.
- Commercial Collections: Our trained, licensed, debt recovery professionals carry over ten years of experience in the commercial collections business. They are backed by a powerful skip tracing department that’s led by a licensed private investigator. Over the years we have recovered some difficult debt thanks to our skills and resources.
- Consumer Collections: Our P.H.D. Philosophy is especially important in the consumer collections industry. Because we treat people with respect and dignity, we help you improve your cash flow without damaging your reputation.
- Employee Reimbursement: Whether your dispute with your worker is due to their misunderstanding or malicious intent, we can recover your dime by helping the employee understand the implications of their actions. Our employee reimbursement solutions include help with overpaid salaries, tuition reimbursement, travel expenses, uniform fees, commission recalls and more.
- Commercial Tenant Collections: If your renter has stopped paying their rent or violated other obligations, then get in touch with us. Time is usually an important factor in such cases.
- Wireless Chargeback Collections: We understand the challenges of being an independent cellular dealer. Competition from the big carriers is tough. Not only are you under pressure from the top but you now have early termination chargebacks to deal with. Because of your size, too many of these liabilities can hurt you. Fortunately, you can get Summit A*R on your side. Our professionals’ insight into the cellular industry can help you recover your outstanding A/R.
If you’re looking for a commercial collection agency, then don’t select one on a whim. Finding the right one can mean the difference between a successful recovery and a damaged reputation. Look for a collection agency that’s effective, ethical, friendly, professional, cost-effective, and is experienced with your industry. When you work with Summit A*R you’ll get all this and more.