Hiring a good debt collector company is very important for a lending business as it can increase the amount of debt collected and returned to you to a maximum level. While collecting debts and reporting to you the collector company should use transparent methods so that a positive relationship with your clients can be maintained in a positive environment. Some tips are provided here under to help you in selecting a right debt collector company for your business.
Consider not only initial cost but total ROI also
Some businesses consider only the percentage charged by the collector agency while hiring them, which is not correct. Actually, the percentage charged can be one of the factors to be considered while hiring a debt collector company. Though this percentage can help in comparing different collectors but it is more important to consider the amount of money collected by them to return you at this stage. Most collectors charge a percentage on the money they have collected but they may not be able to handle the number of accounts as required by you. Many agencies work at low percentage to collect the debts that can be collected easily but ignore other debts. So it is not good to hire a debt collector company that charges fee at low rate for collecting lower percentage of accounts as they cannot give you a better rate of recovery and higher return on investment. It will be better to hire a company that can provide better return on investment even if it charges a bit hire percentage as its fee.
Better customer service
The debt collector company you hire should be able to provide better services to your customers so that a good relationship can be maintained between your business and your clients. Today your collectors cannot break the knee caps or threaten the default debtors. A debt collection agency should focus on making the repayment of debts easier for the clients by offering them various options like payment plans, early intervention and making payments through different channels etc. The debt collector company you select should be able to help you in preparing payment notices for your debtors as soon as possible at an early stage. Though outsourcing is a common trend in business world these days but it is not suitable for a collection company to maintain the sensitivity of your relationship with your client. It is better to hire a domestic collection company for collecting your debts as it will take care not only of your collection but also maintain your relationship with your clients.
Establish partnership with collectors
A debt collection company can provide better results if you make them partner in your business. They will not only collect your money but also increase your work efficiency by managing the accounts receivables of your business. They can improve your in-house efforts for collecting debts as they are expert in recovering debts.
Check the background and track record
You should check the businesses and individuals for which your debt collector company has previously worked to get the best information about the collection company. You can ask the collection company to provide you information about the individuals and businesses which know them and their working. These organizations and individuals may include accounting firms, the chamber of commerce, BBB and business contacts etc. Moreover, you should find a debt collector company having experience in the field of your business as laws of collecting money may differ from one industry to the other. They must know how to deal with the clients in your industry as every industry has its own challenges to be tackled.
Check the license
A debt collector company should have a valid license to do its collection business in the state it is located, as per the laws for collection agencies. The collection agency, you choose to deal with the clients within the state, should local to satisfy you. If you have clients across the nation then you should choose a collection agency that is licensed to collect your money throughout the nation.
Evaluate the reports
Commonly most collection companies fail in submitting collection reports regularly to the company that has hired them. The debt collector company you hire should submit a report of payment on any account, rates of recovery report on your company’s online portal or a monthly statement at least.
Thus by following the tips provide din this write-up can help you in selecting the best debt collector company in Singapore.