Tired of losing money to clients who don’t pay their bills? A debt collection agency can help you recover what you owe. But in order to get a good one, you’ll need to ask them these 3 questions:
1. “How much does your debt collection outsourcing cost?”
Before you move forward with any kind of debt collection outsourcing, you need to know how much you’re going to have to pay for it. Virtually all collection agencies will charge a percentage that’s based on the amount of money you’re trying to collect. In some cases, that percentage may go up — if, for example, the agency has to get its lawyer involved. Luckily, though, you may qualify for a discount if you plan on referring a number of cases to your debt collection outsourcing team, or if your cases all exceed a certain dollar amount.
Bottom line — you’ve got to find out any and all charges that may apply to your case and make sure you’re comfortable with them.
2. “Does your debt collection agency have a lawyer on staff?”
Sometimes, even the most proactive debt collection agency can’t get people to pay up. In order to make sure that you get what you’re owed, the good collection agencies will have a lawyer on staff. That way, your case can go directly to a lawyer who can file suit and take other means that a collection agency can’t on its own.
Sure, you could go out and find your own lawyer if your debt collection agency can’t recover any money, but when your agency has someone on staff, you don’t have to waste your time searching for a lawyer and getting him up to speed. Instead, all of that is done for you.
3. “Can you handle accounts receivable management duties, too?”
If you run a small business — or, you simply don’t want to hire and pay an entire billing staff of your own — a good collection agency will be able to handle your accounts receivable management duties, too. They’ll be able to send out bills and past dues on their own, so that you don’t have to worry about any of it. Then, if any of the accounts become delinquent, your debt collection agency will be able to seamlessly start the collection process.
Even though you’ll wind up paying an additional charge for it, outsourcing your accounts receivable management duties can actually wind up saving you money in the end. Instead of paying salaries and benefits to your own full-time staff, you’ll pay a monthly fee to your collection agency.
The team at PSI Collect knows how to take care of all your debt collection needs. Start the outsourcing process today at www.psicollect.com.
