Does Small Business Need Collection Agency???

The short answer is yes! More than likely, you have clients that are in arrears and are in the 120+ column in your Accounts Receivables. Chances your accounting department, or you as the business owner, have reached out to these clients for payment. In reality, you shouldn’t have to waste your time or staff’s time trying to get these clients to pay. If you have a fair number of clients you are reaching out to, the need for a collection agency is imminent.

Do your research before the hiring of a collection agency. The bottom line is that they are working for you. You will need to make sure your needs are being met. Ask the collection agency if they have experience in collecting business similar to yours. This is the time to ask about their success rate. Don’t forget to ask about their qualifications. Before a collector can contact someone that is arrears looking for payment, the agency must be registered as a collection agency, all fees must be current and the collection agency must not be in the business of lending money. There several rules that must be followed. Collecting debts isn’t a matter of picking up the phone and demanding money. Although the debtor may feel that’s what a collector does. Before you hire a Collection Agency, these are some things you need to be aware of as they are also a small cost to your business. According to www.ontario.ca, they must comply with all of the requirement in the Collection and Debt Services Act (CDSSA) and its regulations.

Find out how the process of contacting your clients will happen and how the debt will be collected. You need to be kept up-to-date, so confirm that will happen on a regular basis. A good collection agency, like Go Beyond Collection Agency will explain all this you and be transparent in how they are to be paid themselves. Make sure the collection agency is insured and carries Professional Liability Insurance. You shouldn’t be worried about the cost of using a Collection Agency. The Agency is usually paid a percentage of the amount collected. The actual employees who work for Collection Agencies are trained professionals. Perhaps ask the Agency for references if you can’t find online reviews. When looking for a prospective Collection Agency to work on your behalf, find out if they’re insured, licensed, bonded and what their success rate is.  A Go Beyond Collection Agency will work with you. It’s generally normal to let an account go past 90 to 120 Days, but if it goes past that, it’s time to call a Collection Agency for assistance. 

For help with collecting your bad debts, give Go Beyond Collection Agency a call at 1-877-300-6006. They believe in transparency for all sides involved.