When customers owe you money, trying to collect those debts by yourself can be a huge challenge. Not only is it time-consuming to track down delinquent payers, asking clients for the money you’re owed can lead to some very uncomfortable conversations.
If outstanding debts are a regular or er even a one-time source of stress in your business, you might want to consider hiring a debt collection agency like Revenue Assurance Partners. Commercial collection agencies will track down your debtors, recover the amount they owe you, and return that money to you.
However, before you choose to work with a commercial collection agency, it’s important to learn about what they do, their process, and how much they charge for their services.
What to Ask a Commercial Collection Agency
1. Are your collectors certified?
Your commercial collection agency should have a team of collectors who are specifically trained to handle business-to-business debt. They should be knowledgeable about the principles of business transactions and informed of the laws and compliance issues that can affect credit and collection of debts.
Here at Revenue Assurance Partners, we are Sustaining Members of both the Commercial Law League of America (CLLA), as well as The International Association of Commercial Collectors (IACC). We are fully Bonded through the IACC.
2. Can the agency offer a range of services tailored to your needs?
A collection agency should never offer just one solution for every problem. It’s essential that they can provide you with a well-defined collection strategy that fits your company’s needs, including the specific methods they will use to collect debts. At Revenue Assurance Partners, we tailor our approach to fit your needs and because we believe on the PHD philosophy (Preserve Human Dignity) we will never alienate your customer, but we WILL get you PAID!
Overly aggressive debt-collection methods can reflect poorly on your company’s reputation, so make sure you feel comfortable with what your debt collection agency will be doing in your company’s name.
3. Does the agency specialize in your industry?
If the collection agency you hire has agents who specialize in your industry, they already have the know-how to get started quickly and efficiently—which increases your chances of getting paid. Revenue Assurance Partner’s collectors are well versed in every commercial industry and understand the nuances of each industry and how to navigate through contracts and rebuttals and disputes.
4. Do they have experience in dealing with international collections?
For businesses that operate in the global marketplace, it’s important to choose a collections agency that can manage overseas accounts to collect money from international debtors. They should be able to provide you with proof that they have served international businesses and have collected debts in countries around the globe, as well as demonstrate the understanding of the local laws that they’ll have to navigate while recovering your money. Revenue Assurance Partners has collected hundreds of thousands dollars of International Debt.
5. What kind of legal infrastructure do they offer?
A reputable debt collection agency should have a network of contributing attorneys and representatives that will help your business take legal action when the situation calls for it. Having these resources will ensure you that your collection agency has the power to take each case to completion, without giving you more to worry about. Revenue Assurance Partners has a national network of commercial litigation attorneys in every jurisdiction in the US and abroad that we have developed relationships with over the past 40 years of being in the industry. They are quite simply, the best of the best.
6. How effective are they at in-house collections?
The recovery rates of a company vary according to different factors such as the client’s niche, the location of the debtor, and how old the claim is. However, even with these factors, the collection agency should still be able to collect as much money as quickly as possible on their own. That’s why Revenue Assurance Partners operates under the notion that if they can’t collect, they don’t get paid. 90% of the funds we recover are done within 30 days of placement.
7. How often do they remit funds received to their clients?
Most collection agencies remit every 30 days on cleared funds. Here at Revenue Assurance Partners, we realize that cash flow is king, therefore, we remit on cleared funds to our clients on a bi-weekly basis. We believe in getting your money working for you again as quickly as possible.
8. Do they have a 24/7 client portal that provides timely and relevant information?
The commercial collection agency that you hire should be able to give you online access that lets you view the status of your outstanding debts in real time. This may be important, especially if your company has a lot of claims in a year. We at Revenue Assurance Partners believe in complete transparency to the assets you have entrusted us with recovering. You will always have 24/7/365 access to your assets placed with us through your client portal called RAPDIRECT.
Their portal should let you:
- View your account’s status 24 hours a day, seven days a week
- Communicate with your designated collector/collectors
- Run statistical reports
9. Can they give you any complimentary educational and value added services?
Good agencies take client education seriously and provide informational programs, educational newsletters, or free webinars that equip you with important knowledge about debt collection in the business world. These resources will display the caliber of the company and how much they value giving you quality service. Revenue Assurance Partners provides our clients with Free Educational Materials, Free Credit Reports on new customers, Free 10 Day Demand Letters and credit reporting on debtors placed with us.
Take the Time to Know What You Want in a Debt Collector
Exploring the above questions will help you become much better equipped to select the right commercial collection agency for your business. By gathering all the necessary information and putting together a list of essential characteristics for the company you want to work with, you’ll be able to find a collection agency that will help you regain a significant amount of lost revenue and reduce the amount of stress in your life.
Revenue Assurance Partners, LLC