5 Important Questions to Ask Your Collection Agency

As a business owner, having unpaid debts from customers is a challenge. It can affect your cash flow and even your business operations. At some point, you may need to enlist the help of a collection agency to recover the debt. However, not all collection agencies are created equal. It is important to ask the right questions before choosing a collection agency. In this blog post, we discuss what you should ask a collection agency as a business owner.

1. What are your collection strategies?

Every collection agency has its own strategies for retrieving debts. However, they should be able to provide you with a general overview of how they plan to approach your unpaid debts. This could include sending letters, making phone calls, or taking legal action. Ensure that their strategies align with your business values and reputation. This might include the frequency of attempts they make to contact the debtors, as you want to ensure they are doing everything they can to retrieve the debt without damaging your company's reputation.

2. How much are your fees?

Collection agencies typically charge a commission on the amount they collect. It is important to understand what their fee structure is and how much they will take from the debt they recover. You want to ensure you get a fair price, so it's important to do your research and compare fees charged by different agencies.

3. What happens if the debt cannot be recovered?

There is always a possibility that a debt may not be able to be recovered. It is important to understand what the collection agency's policies are if this happens. This means understanding how quickly they will write off the debt and if, in the case of a long-term debt they will keep on trying, even after writing it off.

4. What is the timeline for debt recovery?

This is a crucial question to ask. You want to know how long it will take the debt recovery process to occur. In the case of a collection agency, this will be from the company taking on debt recovery to the final repayment made by the debtor. It's important to have a timeline so that you can plan operations and have a clear idea of when the cash flow will improve.

5. Do you have experience with similar debts in my industry?

You need to choose a collection agency that understands the nature of the debts in your industry. They should be familiar with the legal requirements and processes involved with debt recovery. You may ask them for references from previous clients in your industry.

As a business owner, choosing a collection agency can be a daunting task. Before hiring an agency, it is important to ask the right questions to ensure they have the necessary expertise and can meet your specific needs. By asking the above questions, you can be sure that you are making the right choice. You'll be able to recover debts and keep your cash flow going with as little stress as possible. Know that Go Beyond Collection is very transparent will be more than happy to answer any questions you may have! They are Canada’s leading collection agency.

Contact them at 1-877-300-6006!