Third-party collectors: What firms should look for

Obviously, no firms want to enlist the help of a third-party when it comes to collecting what’s owed to them. But sometimes employers simply don’t have any other options.

So when you do need the services of a collections agency, it’s critical to know exactly what type of organization will work best for your firm’s unique business needs.

And what’s the best way to go about doing just that?

Essential qualities of a third party

The National Association of Credit Management recently asked employers what they felt were the most important factors when it comes to engaging a collections agency. Here’s how they responded:

• Quality of service (50%)
• A recommendation from a colleague (12%)
• Cost (9%)
• Specialization (9%)
• Convenience — one source for all collection/legal needs (5%)
• Certification (5%), and
• Location (1%).

Separating the pack

If you’ve whittled down the list of collections agencies you’re considering to just a few, here’s one way to help you make the final decision: Talk to some of the collectors at each agency to be sure these are the people you want calling on businesses on behalf of your company. A clear favorite should emerge from there.