As a business, every collectible is of great importance. Delinquent accounts can take a lot from you not to mention that it is a challenging task. Now, there may be ways to avoid the stubborn debt collection process, but if it fails, the option now is to get those collection agency Toronto professionals who were trained to do this job.
Now, not all debt collection agencies can handle every situation out there. You have to look for the right one for you and your business. Here is a short list of things to consider before hiring the most ideal collection agency Toronto partner.
Search within the locality first.
Often times, debt collection agencies have their own specialization, like the office of Francois Sauvageau. Some have a good reputation in dealing with large businesses or corporation while others prefer small businesses or home-businesses. Do some research first and find out who’s who in the collection business in your vicinity. Try to know more about your prospects in terms of the kinds of debtors the agency deals with the most and the types of businesses they serve often.
Check if the agency is legitimate.
The debt collectors that you want to represent you should be able to abide by the Fair Debt Collection Practices Act that the Office of Consumer Affairs have stipulated, aside from being licensed and bonded. There are different rules for collection agencies from state to state even down to their specific localities. So make sure that they are legitimate like Sauvageau & Associates
Execute skip tracing
Often times, debtors try to skip from town to town to be able to avoid similar persons like you and a good collection agency knows how to counteract this practice. The agency must have a way to access several database to locate a nonpayer, especially those that have no forwarding address. This is significant if you have tried getting in touch with your dodger and have been disregarded about the matter several occasions.
Understand value of insurance.
We cannot disown the fact that some collection agency enforces aggressive tactics to be able to collect. Now your debtor feels that the collection firm acted in bad faith and decided to sue. With this often called “Errors and Omissions Insurance, “you will not be held liable for hiring the agency whether or not you win the case. A debt collection agency of good standing will definitely have one of these for defense and they will not hesitate to show you a proof before getting down into your respective deal.
Learn about fees and contingency costs.
You should then consider the cost of the service with your chosen collection agency. After comparing the charges from different service providers, you can then consider one that is right for you. Common payment arrangements are:
Flat Fee. A certain amount is generally collected early in a debt collection process.
Contingency. A typical arrangement for debt collection agency. This can be between 25% and 45% of the total amount to be collected, depending on the details of the account.
When your requests for a payment have been running unsuccessful, or you and your company do not have the extra time to focus on collections, a third-party agency could help the business improve its bottom line and recover all unpaid debts.