What Type of Collection Services do you really Need?
Let’s be honest, there are so many types of debt collection services and commercial collections agencies in the US. The toughest part for creditors is sitting down, figuring out which is the right one to use that understands the client’s industry and contracts. We will answer some of these tougher questions today to help shed light on these looming questions.
Number of Claims to be submitted each month.
So, let’s start off by asking, how many new cases/accounts will need collection treatment right now? Would you say you have less than 15? If you can answer YES to this question, then you are going to want to go with an agency that can be viewed as a Smaller Agency. This will ensure that your accounts get worked properly and will ensure that the agency will want to keep your business. If you go with a large agency that employees over 50+ collectors. You can be sure that you may just become another client, which will mean you may get lost in the sea of clients and not get the proper attention to maximize the highest recovery.
Are your claims smaller than you feel is worthy of a collection agencies time?
Far too often, creditors think that they have smaller claims that may not be worth pursuing through collections.
If this is the case then you should use a collection agency that has very automated systems, including automated letter campaigns, and possibly script-reading tele-collectors. If your claims are larger, then you will no doubt want to speak with the person who will be collecting your debt. They should have a vast knowledge of the entire process and be able to put you at ease on how they collect debt like a professional.
What are the Types of Debt owed to your company?
There are several collection agencies to choose from that handle a number of different industries and have their internal processes in place to cater to those industries. It is not always necessary that the agency you choose work solely in that category! However, it is very important that they have references in that industry and have vast knowledge and a proven track record working in that space.
Construction
Breached Contracts
Transportation
Utilities
Subrogation
Heavy Equipment
Medical
Consumer
Who do you want your collection agency to collect from?
There is a major difference in the collection industry regarding debt collections verses Businesses and Consumers. Your collection agency must know all the laws that apply to the collection of debts from each category. There are many requirements that an agency must meet to collect from consumers that are protected by the FDCPA. However, those same rules don’t apply to Businesses, this is called “B2B or Commercial Collections. “
Commercial Collections
The FDCPA does not apply to B2B & commercial collections. As a result, the commercial debt collector can take much greater measures to collect the debts from a business/corporation. Steps such as asset and liability investigations, calling vendors and suppliers and trade organizations may be used to put pressure on the debtor. These are steps that can’t be taken when dealing with a consumer. It takes great skills and negotiation tactics to resolve business debt.
What did we learn by this article?
By now, you should know the following:
- What is the difference in Consumer Collections.
- What is the difference in Business/Commercial Collections.
- What is the difference in small and large balance Collections.
Contact Construction Credit & Finance Group today to discuss your collection needs and our customized approach for all your needs. Call us at 800-848-4176
