When is The Right Time to Hire a Collection Agency?

When is The Right Time to Hire a Collection Agency?

When deciding whether to hire a collection agency to address overdue payments, it is necessary to identify which type will best serve your organizational structure, your industry, and your clientele.  Read on to learn more about the process of determining whether a collection agency is the right choice for your company, and how to decide which one is right for your needs.

There are many reasons why organizations elect to enlist a collection agency to procure overdue payments. The most common reasons include when a customer with a past-due payment cannot be located, a check has bounced, it has been over 90 days past the payment deadline, or the customer is continuously avoiding, stalling, or delaying payment. For many businesses, it is thought of as a last resort before giving up on receiving that invoice payment. Rather than accepting the loss of income for goods or services rendered (which can exponentially add up), companies choose to delegate the task of collecting payment to a specialized agency. 

Collection agencies are hired because debt collection requires a specialized skill set that may go beyond the scope of an organization’s internal employees. Beyond the typical phone calls and letters, debt collectors need to know what protocols to follow and the distinct legal options to pursue based on diverse scenarios. Especially in the cases of small to medium sized businesses, it is nearly impossible to expect employees with other responsibilities and duties to be as well-versed on these intricacies as a specialist. Furthermore, the amount of time and effort that it takes to pursue a delinquent payment often ends up costing the company more. In these situations, collection agencies can be the more efficient and cost-effective solution. 

Companies can also elect to hire a collection agency to preserve client relationships. Since the collection agency takes on the role of the “bad guy”, the organization’s image can remain favorable, and the relationship intact. Additionally, the specialization of collection agencies allows them to offer a variety of options to work with both the company and the consumer to figure out the optimum solution, whether that be a payment plan, an online payment option, and so on. 

When deciding on the right collection agency for your company, there are certain criteria to keep in mind. Most importantly, is confirming that they are qualified, licensed, and insured, so all federal and state requirements are met, and that should any issues arise, your company will not be held liable. Secondly, a high level of consistent and thorough communication is essential for them to relay expectations, information, and triggers to move forward in the established process. Lastly, keep in mind how they will represent you. Their reputation among other businesses and clients, their relevant experience, and how closely they work with you should be major considerations. The tactics they use during the collection process reflect back upon your business, and they should be achieving their objective while maintaining a respectful, professional, and courteous attitude at all times.

What differentiates Alacrity Collections is that the company is fundamentally rooted in compassion, and treats everyone with respect and humanity. As a medium-sized collection agency, Alacrity is able to serve clients with personalized attention and demonstrate transparency at all levels. Maintaining a reputation of reliability, quality work, and strong ethics has earned Alacrity Collections the distinction of the top collection agency in Maryland, with name recognition throughout the mid-Atlantic. To learn more about Alacrity, or to enlist their services, please visit their website here

 

Hire Alacrity to Manage Your Collection Account

Alacrity Collections is proud to be a leader in debt collections since 1982. Chasing overdue invoices is not an effective use of your time. Let our team help so you can work on running and growing your company. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our services and get in touch, please call us at 1-800-752-9663 or email us at info@accmd.com.

 

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