How to Evaluate Debt Collection Quotes and Choose the Agency Best Suited For your Company

Collecting debts of delinquent accounts can be stressful, time-consuming, and sometimes expensive. Most probably, you may even receive returns that will just cover the cost of the debt collection. It is then, not surprising that a lot of companies opt to pass off this unpaid accounts to debt collection agencies. Hiring a collection agency can cost a lot so it should best be done when the delinquent accounts owe a significant sum of money. Aside from that, the said accounts must be about 60-90 days overdue as the older the overdue account is, the harder it is to be recovered. But how do you get a debt collection quote?

You can start of by researching debt collection agencies in your locale and check out if they belong to the Association of Credit and Collection Professionals International or other trustworthy trade group. This can assure you that that your prospects follow standard ethical conduct. Also, consider those which already have experience on handling companies like yours. They are most likely to be efficient and reliable. From your narrowed down list, contact the agencies and ask for debt collection quotes from them by giving information on the nature of your company and the kind of debtors you have.

After gathering the quotes, compare them. Some of debt collection agencies may take about 25-50% of what they will be able to collect. The rates usually depend on how old the accounts are and the amount of debt incurred. While some may also have fixed rates at monthly basis, or they may only charge per phone call or letter they make for you. Remember, however, that your assessment does not end there. Do an evaluation too about your company. How frequent are you going to use their services? How much can you spend for the fees to be paid for an agency? What structure do you think is best suited for your needs? Consider these questions in selecting which agency is best suited for you as you look into the debt collection quotes they have given. Do not forget that your aim is to have significant returns and not to have more loses.

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Photo source: http://www.flickr.com/photos/jollyuk/1989719848/

Know well and evaluate carefully which will match your needs basing from debt collection quotes of your prospect agencies. Studying this guide, you may have already realized that reputation, reliability, and practicality are the keys to finding a debt collection agency fit for your company.

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