How Do You Choose The Right Debt Collector?

If you type ‘debt collector’ into Google, you will find thousands of results for debt collectors all over the country. They’ll all specialise in different things, work in different markets and price themselves at different points – but they will all tell you that they are the best at what they do. So the question is, how do you figure out which one is the right fit for your business?

Before you commit to using one particular debt collection agency, there are a few things you’ll need to consider and questions you need to ask yourself. The answers will help you narrow things down, and choose a debt collection agency that will give you the best chance of a positive outcome while being cost-effective, easy to work with and protecting your reputation.

 Are They Operating Legally?

The first thing you should check about any company, particularly a debt collection agency, is that they are operating legally. There are plenty of debt collection agencies out there who are less than reputable, and they are often the ones who will end up costing you more than they claim.

First, search their company name on Companies House and make sure they are in fact a legally registered UK company. This is always a good sign that they are a legitimate company. It’s also worth making sure that they are GDPR registered – as they will be holding and processing a lot of very sensitive data, so this is a must. When discussing your requirements with them, ask about their privacy and data management policy to check if it’s properly robust, and that your data will be in safe hands. Finally, make sure they have the appropriate level of third-party liability and professional indemnity insurance.

What’s Their Track Record?

How long has the debt collection agency you’re looking at been running for? If they have been in business for a while, then there’s a good chance they are good at what they do. But it’s always worth checking. Ask them about their success rates and if they can provide examples of their work. Check their customer testimonials, reviews and case studies to see what other people think of them – this is a good way to get an insight into the way they work. Whatever you do, don’t just rely on the company’s own website to tell you that they’re good.

Are They Easy To Work With?

Not all debt collection agencies are created equal. Some will be very expensive, while others will be very cheap. Some will charge up-front fees, and others will work on a commission basis. And some will be incredibly easy to work with, while others can be quite challenging!

The whole point of using a debt collection agency is to recover the debt as quickly as possible, without extra cost and time commitment on your part. That means finding an agency that’s easy and cost-effective to work with and provides an attentive, personalised service. A dedicated account manager is a plus, as this will keep you regularly updated on the process.

Is Their Service Comprehensive?

While debt collection might be the service you need right now, you never know what other support you might need in the process. A good debt collection agency will offer you a wide range of other services, from proactive debt management to support with taking legal action. Ask what wrap-around services they offer, and what they can help you with.

Will They Protect Your Brand?

Debt collection is a sensitive issue for many people. The way you handle perusing overdue invoices, speak to customers and the tactics you use all create an impression of your brand, which in an ideal world would be positive. If the agency you choose uses strong-arm tactics or unethical practices, it can reflect incredibly badly on your business. That’s why it’s vital to find a debt collection agency that’s committed to working with tact and sensitivity, and well within the confines of the law. It’s all about being firm but fair, and finding a company that matches your values.

Do They Understand Your Industry?

The principles of debt collection may be universal, but there are often industry-specific considerations to take into account. For example, retentions can complicate matters in the construction sector. That’s why it’s important to be sure that your debt collection agency has a good understanding of how your business sector operates. Do they have experience of working with similar companies? Do they engage with your industry sector via trade associations and events?

At Debtcol, we are proud to be debt collections with a difference. We are an experienced collections agency with a team of highly trained staff, each dedicated to providing you with the best quality service. We offer intelligent and cost-effective debt collection you can count on. If you’d like to know more about our service, just get in touch with the team today to book your free consultation.