![]() You will sign a contract authorizing the collections agency to recover funds on your company’s behalf. You’ve Selected a Collections Agency- Now What? Be sure to check references before signing any contracts. The Association of Credit and Collections Professionals (ACAInternational) and Receivables Management Association (RMA) are good places to start.Įven though collections agencies are bound to legal and compliance requirements, some will cut corners. Check if your collections partner belongs to any professional associations.This pattern is due to the nature of the work. The overwhelming majority of collections agencies have poor reviews. Be mindful that user reviews are likely to skew negative.You can also research the company through associations like the Better Business Bureau to check for accreditations. If the company has been around for a decade or more, the organization is likely stable and reliable. Examine the history of the collections agency.Do you need a collections agency that is licensed in multiple states? Is your business commercial or consumer related? Do you need an agency that works with a network of attorneys? Ryan O’Hara, a sales director for Frontline Group, a company that owns multiple collections agencies, recommends that small business owners take the following steps: A collections agency can be a wonderful resource. You do not want to spend your time hounding down dishonest people for payments that your company is owed. If you cannot trust a customer to have integrity in fulfilling his or her side of an agreement, you do not have time to waste. In this situation, you should ask a collections agency to take over. If everyone stops responding, you have no reason but to assume that the company is experiencing a crisis or does not take its payments to vendors seriously. If your point of contact becomes unresponsive, reach out to additional team members within the organization- that’s why it’s important to establish a direct line to accounts payables teams. A customer’s disappearance is never a good sign. In either case, there is always a “deadline,” and if that milestone does not happen, it may be time for a collections agency to take over. Perhaps this customer will have also received an extension. One potential protocol is to send customers to collections at 90-days past due unless the customer has a valid need to postpone or there has been a simple billing error.īy this time, the customer would have received automated payment reminders, a personal note, a phone call, and many options to resolve payment. ![]()
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