Every business that extends credit to their customers and clients relies on that income to maintain profitability and cover their own expenses. When your customers fall behind, you may attempt to collect on those accounts in-house, but hiring a third-party provider often yields higher returns—without damaging the relationships your company has built. Here are a few questions you might have about hiring a collection agency.
What You Need to Know About Collection Agencies
What do collection agencies do?
Collection agencies employ a variety of tools to contact debtors and convince them to pay back overdue accounts. Depending on the circumstances, they might work with the debtor to develop alternate payment arrangements or file a lawsuit to collect on delinquent debts.
Will the collection agency harass my customers?
Reputable collection agencies are required to follow the Fair Debt Collection Practices Act, which prohibits harassment and other unethical behavior. For instance, collection agencies are not allowed to call repeatedly, make threats, or use abusive language.
What are the benefits of outsourcing my collections?
Collection agencies have an in-depth understanding of the law and employ highly trained professionals with the tools to maximize payments on delinquent accounts. With a higher rate of return, hiring a collection agency is often more cost-effective than handling these tasks in-house.
How do I choose a reputable collection agency?
A collection agency represents your business, so you should investigate your options carefully before choosing a provider. Look for an agency that is certified by the Commercial Law League of America or other industry organization and has a reputation for high-quality, courteous service.
As a global leader in the collection industry, Joseph, Mann & Creed in Cleveland, OH, is a dependable partner you can trust with this critical aspect of your business. Their team of professionals is well-versed in a variety of mediation and negotiation strategies and will work with your customers to resolve outstanding debt. Visit the collection agency online for more on their philosophy, or call (216) 831-5626 to discuss your options with a member of their team.