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WHAT TO LOOK FOR IN A COLLECTION
AGENCY
So, you need to select a Collection Agency, or at least think you might need to. Well, there are only about 7,000 of them in the USA. Lucky for you though, most of them aren’t in your market. Still you will have several to choose from in most cases. The right choice means more money in your bank account.
Make this a little easier with the following tips on what to look for in finding the right agency for you.
1. SERVICE & CONSULTATION: Offering billing & collection workshops, staff training
2. LICENSED, BONDED AND INSURED: Assures Federal & State law compliance
3. REPUTABLE: Good Rating with Chamber of Commerce & Better Business Bureau
4. EXPERIENCE: Expertise in your industry
5. REFFERENCES: Documented proof of recovery rate and references The national average recovery for all Collection Agencies is down to about 14%--that's only 14 cents recovered for every dollar turned over to them. However, there are agencies that average almost 60% recovery rates
6. HOLD HARMLESS AGREEMENT: Lawsuit liability protection
7. NATIONWIDE: Ability to make contact with debtor ANYWHERE
8. PRICING: Flat-fee or percentage of the account balance. Flat-fee is most economical. A percentage agency will keep from 30% to 60% of the recovered money, while a flat-fee agency should be less than $15 with discounts based on your volume
9. GUARANTEE: Written Performance Guarantee
10. LEGAL CONTACT: Ability to provide possible legal intent without requiring legal fee
11. CONTROL: Ability to start and stop collection activity at will
12. STATUS REPORT: Monthly status report of ongoing collection activity
13. CHOICE OF COLLECTION TECHNIQUES: Diplomatic or Intensive collection efforts, without alienating your customer or patient
14. THANK YOU LETTER: Thank You letter sent to paid debtor accounts at no charge, which helps collect your money and keep your client
15. DEBTOR TO PAY CLIENT DIRECTLY: Psychologically, a debtor would prefer to pay the creditor directly rather than paying the collection agency
16. LOCAL REPRESENTATION WITH NATIONWIDE COVERAGE: Professional service
17. ELECTRONIC ACCOUNT SUBMISSION: Eliminates paperwork and saves time
