You allow different businesses to borrow money from you. Since your business started small, you understand their struggle and you want to help them out. While some debtors were willing to pay religiously, some are not. Some debtors will not take your calls, make excuses, or disappear. And because their actions are already a cause for your concern, you decided to hire a debt collection agency to help you in your dilemma. You think that this is a cost-effective decision. While that may be true, do you know what to ask the agency?
Debt Collection
If you can no longer handle the situation you’re in right now, you always have the option to seek professional help. Their services might come with a price, but it will save from the stress of doing everything yourself. Allowing the professionals to do the job on your behalf might even work out for the best. To ensure that you know what to expect and how they can help, here are some of the questions you should ask a debt collection agency.
1.Ask about their business background
First things first: You need to know the background of the debt collection agency you’re working with. If you’re able to finally set an appointment, start the conversation by asking how long they have been in the industry and how many employees they have. All of this information will not only help you determine details about the business, but it can also become a deciding factor of whether the collection agency is legitimate or not.
2.Ask about their working hours
The agency’s availability and working hours are important. If the agency is operating during working nights and weekends, they’ll have better chances of contacting your debtor and accommodating them when the latter makes a payment. Your debtors can no longer use the excuse of not being available to make payments because of time constraints. Remember, the more hours the agency operates within the week, the more likely they’re able to collect debt from your debtors.
3.Ask about the number of clients they have
This question is similar to the question about how long they have been in the industry and how many employees they have. If a company has a large base of clients, it might reflect how good they are. Good word might’ve spread. On the other hand, if they have too many clients, you should ask if they will give you your due attention. As a client, you should be able to see if they’re dedicated enough to handle your case even if they’re dealing with too many clients at once. Although this is a minor issue, asking this question to the agency will give you an idea of how flexible the company is.
4.Ask about their international experience
Not all lenders have debtors internationally, but if you do have one, it might be best to ask the agency about their experience about the process. This is crucial because debt collection laws vary from one country to another and once the collection agency violates any of these, your credibility (given that you were the one who hired them) will be at risk – and you don’t want that to happen. It might be best to work with a collection agency who has partners in different parts of the world so it’ll be easier to collect international debts.
5.Ask about collection rate vs. contingency rate
Don’t let the representatives from the agency snub you by answering one side of this question. When you meet with them for the first time, you should know what their contingency rate is for collecting debt on your behalf. You should also know how they could do the job for you. Don’t settle for an agency which offers the lowest contingency rates but doesn’t solve your problem. Doing this will only waste your time and money.
6.Ask about the frequency of status updates
You’ve paid for the services of the collection agency that’s why it’s just right that you’d be able to hear from them. When you’re convinced that you finally found the agency for you, close the deal by asking how often can you expect an update from them. Also inquire what should you use to contact them if you have any concerns or questions. Are they available online or do they prefer calls? Are they available to meet with you every week or only when there is a need? Yes, these things matter.
In conclusion
You might be stressed from contacting debtors just to pay you, but you don’t have to put all the responsibility on your shoulders because you can always acquire the services of a debt collection agency. Once you hire one, you can ensure that someone is collecting debts for you while you can focus on other things in your life. But before you can maximize the services a debt collection agency gives you, it’s essential that you also know what to ask them first.
About the writer: Karl Gardner is a writer contributing for debt collection agency firm Nelson, Cooper and Ortiz, LLC. His interest in writing legal topics are evident in his pieces, as he always strives to make sure his pieces are easy to understand and comprehend. Karl likes to play chess during his free time. 

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