Effective debt collection is a vital element of comprehensive risk management. Irrespective of the kind of business you are in, there will always be customers who are not willing to pay their debts. Making constant calls that are often not answered or sending invoices that will remain unpaid is both frustrating and time-consuming requiring the help of professional debt collectors. Efficient debt collections safeguard your assets, supports your sales and marketing goals. A real collector is familiar with strategies that are effective in getting debtors to pay. They employ technologies and tools to locate debtors and ensure they pay immediately. However, it is important to hire a professional and experienced debt collector who will ensure debts are paid on time and in full.

Choosing the best Debt Collector

Choose a Professionally Legitimate Company

debtEnsure that the company you are about to hire is licensed and bonded in the state they are providing the services. A problem may arise the process of debt collection, and you do not want to be held legally responsible for hiring illegitimate agencies. You should also check to see if the agency has been involved in lawsuits or even paid fines because of wrongful collection activities. You can evaluate an agency’s adherence to professional standards based on their membership to Association of Credits and Collections Professionals or the Commercial Law League of America among other professional associations.

Client reviews

You can ask the agency to provide you with contact information of a few customers to understand how they felt about the services provided. Talking with other businesses in your industry that have used the agency’s services will assure you of their performance and dependability.

Internal collection policies of the agency

Find out what are the private collections policies that the agency has in place and whether they usually outsource to an agency in case an account becomes delinquent. You have to consider at what point is setting an account with a company is profitable instead of attempting to collect it in-house. Remember, an account that has been delinquent for over six months has only a 50% chance of being raised; at one year it has a 20% chance of being received.

Collection capabilities of an agency

You can judge the capability of an agency by finding out the number of collectors available, the training they have in handling accounts, the amount of accounts each collector controls per month as well as the average collection rate. If you are planning to outsource multiple accounts, then you will be most suitable to hire an agency with many collectors.


debtMost agencies work on an average commission rate of about 15%-25%. On the other hand, if your organization places a claim at an early stage, and the cases are then called by your company’s name then you can be charged a small rate of up to 2%. Choose the agency that will give you the best value for your money.