Millions of businesses all over the world are having to endure increasingly more challenging times as the global economic turmoil deepens. Large numbers of firms are going to the wall every day due to the crippling problems caused by bad debt and having large portions of their income tied up in unpaid invoices. Many of these companies attempt to recover the outstanding cash using their own resources but all too frequently it becomes clear that they do not have the time or expertise to accomplish this successfully – by this time it is often too late. The most effective way to solve the problems caused by bad debt in your business is to employ the services of a reputable commercial debt collection agency. This article aims to give you more details on the key aspects to consider when selecting the right commercial debt collection agency for your business. additional hints
There are an ever-increasing number of commercial debt recovery companies out there. The best place to start when looking to employ their services is by word of mouth recommendation. Take a moment to think about your friends, relatives and business contacts… Have any of them recently used an agency to collect bad debts in their business? If so, contact them and find out what their experience of the company was, if they give you positive feedback then get the details of the debt collection agency they used. This is one of the most effective ways to find a reliable and reputable company to work with to get you positive results quickly.
If you don’t know anyone who has recently required the services of a commercial debt recovery business the next step is to carry out some research of your own. Start with a web search to come up with a list of agencies in your area. There are a number of things to take into consideration; here are a few of the key points to look for in selecting your shortlist of commercial debt collection agencies to contact:
Does the company specialise in collecting business bad debts? – There are many agencies whose main business is collecting high volume non-commercial debts from individuals. It is advisable to steer clear of these firms as they may not have the expertise in the commercial sector. You can usually find this out from the services section of their website.
How long has the company been in business? – Check how long they have been established to ensure they are not a “fly by night” operation.
Commission Charges – Commercial debt collection agencies charge a commission on any debts recovered. Check the charges listed on their website, these are usually negotiable depending on the number of debts you have to recover.
No Win No Fee – Ensure they operate a No Win No Fee structure whereby failure to recover any debt means there is no charge incurred.
Location – The internet gives you access to companies all over the country, but the best way to strike up a productive partnership is to focus on companies nearer to your place of business. This way you can easily visit them for face to face meetings if required and it is far easier to build a positive working relationship.
Do they offer a free consultation? – Many debt collection agencies offer some sort of initial consultation. Make sure you can carry out an initial discussion with no obligations. Often, the best way to strike up a good working relationship is by talking with them either face to face or on the telephone.