Which Debt Collection Service Is Right For Your Business?

When we talk about debt collection, it might sound like just one big service we offer. As though every single type of debt collection and scenario could be covered by one offering. But in reality, there’s a wide range of services a good debt collector can offer, and not all of them will be suitable for every business. These services will be tailored to suit different sizes and types of clients, from multinational corporations to SMEs. Educational establishments and even public sector organisations.  Even the debtor and their situation will vary, meaning that to get the best results, you will need a tailored debt collection service.

But how do you choose the right debt collection agency to work with? You start by asking yourself a few simple questions, and finding a collections agency that fits the bill.

Do You Want Flexibility And Assistance On Hand?

If you only have a small number of debtors who are at risk of defaulting, or you need help chasing one particularly difficult payment, then working with a debt collection agency on a case-by-case basis is probably the best approach for you. This way you’re only paying for services when you need them, and the collections agency can become another tool in your arsenal for difficult customers.

What Fee Agreement Works Best For You?

In general, debt collector fees work in one of two ways. They either charge you a set fee for the work, regardless of outcome, or they work on a no collection, no fee basis. The type of fee arrangement will depend on the service you’re using.  With a no-recovery, no-fee agreement, you don’t have to pay the collections agency anything until they have successfully collected the money owed to you. So there’s no risk to you, and it’s in the collectors interest to recover the money as quickly as possible. It also means you don’t have to worry about the costs escalating if it takes longer than expected to get payment from the debtor.

Do You Need Support With Regular Debt Collection?

If you’re looking for more regular support, advice on preventing late payments and overall credit management assistance, then developing an ongoing relationship with a debt collector will be advisable. This level of service is generally for businesses and organisations that need more frequent help to recover their unpaid debts and might have other financial issues they need extra support with. In return for a more substantial commitment, you can expect extra features and benefits of the debt collection service – including things like service level agreements, more detailed progress reports, credit management support and even access to online analysis tools. The exact details will depend on the debt collector you choose, so make sure you check their services and contracts carefully.

How Many Credit Accounts Do You Have?

If you run a high-value sales ledger with a large number of debtors, you may want to look for a more premium debt collection service. These higher packages can support you with credit control processes, making sure they are carried out efficiently and in a cost-effective manner, in line with your best practices. You may also gain access to more accurate forecasting, reduced admin pressure on your in-house team and proactive debt management. Take your time in finding a debt collection firm who can support you in the right ways, and not try to sell you extra services you don’t need.

Do You Need A Debt Collector That Understands Your Industry?

Having a recovery agent that understands the sector that you work in can be a great benefit.  They will have experience in dealing with debts in your industry and will know the issues and disputes that may arise and how to deal with them.  This can be crucial in saving time and getting straight on with the job of recovering the money owed to you.

At Debtcol we pride ourselves on offering flexible and affordable debt collection services, designed to suit a wide variety of businesses and sectors. Once we know a bit more about you, your business and the type of debts you are looking to recover, we can assign a dedicated account manager with experience in that area to help you. With our support, you can recover one-off debts or manage your regular credit and debt collection processes, without having to worry about risking your reputation or relationship with your clients. If you would like to find out more, just get in touch with one of our advisors today.