Step I - Select a collection agency
Choosing a credit collection agency is perhaps the most important and difficult task. Some factors you should consider selecting a collection agency are:
- Experience and professionals
- Geographical presence
- Expertise
Fees and charging models -
- Customer references
Collection Agency Services various free collections reports and articles on this site has covered this topic in depth through -.
Phase II - Collection agency hiring and setting up procedures
Once you select a collection agency, you have to take the first two steps:
Enter into a contract with the agency;
Set up how much you are going to interact with agency procedures.
A contract is a legal document and its legal experts, of course, it will prepare properly. Just as important as you privacy and non-disclosure clause is included. Your accounts receivable, customer contact, product and services pricing, etc. to facilitate faster debt collection agency as to the collection is likely to pass sensitive information. Are you sure that this information do not want to fall into the wrong hands.
Setting up procedures to work with the collection agency is a very important step. Success or failure of your participation and how well defined your processes are strictly followed and how they will depend a lot on. Important processes you need to define are:
Internal processes: the place for you to define bad debt collection agency referring the matter to put a clear process. Collection agency to refer the case to you before you make a deposit due to serious internal efforts intended.
Information transfer: How do you blame your dues and will transfer information about customers to collection agency, and you will get information from your collection agency? Information transfer process of debt collection software can make it easier and safer.
Third party dealing: As mentioned earlier, it is important that you ensure the security of information you give to the collection agency. Collection agency, one or more of its associated agencies to use information about customers can get convicted. So you how much information they share with third parties that may need to set a clear protocol.
Communication: You communication within the company and collection agency needs to set a point contact. Debt collection practices, communication time is extremely important therefore to determine the success of your debt recovery process will go a long way. Again, the importance of debt collection software can not be overemphasized here.
Performance Monitoring - Phase III
Once all procedures are established, the collection agency to monitor the performance begin. This is an ongoing process when dealing with a collection agency. Monitoring standards are important:
Quantitative
- The number of cases credit collection agency and percentage of cases sent to successfully resolve them.
- Debt collection agency recovered from the percentage of all known cases.
- Percentage of debt recovered by collection agency from solved cases.
- The amount per fee commission / collection as the total bad debt cases referred to them is paid to the agency.
- Full / partial credit collection agency for collection taken by the average number of days.
Qualitative
* How well do your customers with the collection agency professionals deal?
* What collection agency all legal requirements mentioned in the Fair Debt Collection Practices Act to follow?
* Collection Fair Debt Collection Practices Act provisions went beyond the agency?
* What collection agency and all procedures followed the guidelines set by you?
Step IV - Contract Close
Hopefully, the selected collection agency will work best for you. But if not, you transfer all your debt collection agency needs processes. The following important points to remember when you are finished, the contract should:
Privacy and collection of non-disclosure clause as well as their employees with the agency after the expiration of the contract apply. Collection agency returns all documents related to your business and storage of all data related to your business information deleted.
Following these simple guidelines will ensure that when a collection agency that works best for you and your bad debts are minimal handling.
Wednesday, October 27, 2010
Dealing With A Collection Agency
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