Best Debt Collection Agencies
Looking for an efficient way to collect outstanding fees from your clients? Consider working with a third-party debt collector.
Debt collection agencies are masters at recovering outstanding fees. Here’s how to find the best firm for your business.
Recommended Firms
CBE Group
The CBE Group is a prominent provider of accounts receivable management solutions. Founded in 1933, this Iowa-based company offers tailored debt collection services for clients in diverse sectors such as education and telecommunications. They prioritize compliance and customer service while maximizing recovery rates for their clients.
Midland Credit Management
Midland Credit Management is a major player in the debt buying and collection industry based in California. Established in the early 2000s, they focus on purchasing charged-off consumer debts and working with individuals to find manageable repayment solutions. Their approach emphasizes transparency and customer support to help consumers regain financial stability.
IC System, Inc.
IC System, Inc. is a well-established debt collection agency based in Minnesota, operating since 1938. They provide a range of accounts receivable management services tailored to various industries including healthcare, telecommunications, and retail. With a focus on ethical practices and customer service, IC System aims to maintain strong relationships between creditors and consumers while maximizing recovery rates.
PRA Group
PRA Group is one of the largest debt purchasing and collection agencies in the US, headquartered in Norfolk, Virginia. Established in 1996, they specialize in acquiring non-performing loans and providing collection services across various sectors. PRA Group emphasizes responsible collections and works closely with consumers to create manageable repayment plans while adhering to regulatory standards.
Transworld Systems Inc. (TSI)
Transworld Systems Inc. (TSI) is a leading provider of accounts receivable management solutions based in Delaware. With over 40 years of experience in the industry, TSI offers comprehensive debt collection services designed to help businesses recover outstanding debts efficiently while maintaining compliance with regulations. Their innovative technology and dedicated staff ensure high recovery rates and client satisfaction.
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Five things to consider when partnering with a debt collection agency
Before you had over the responsibility of collecting outstanding fees to an agency, consider the following:
Your customer base
Are you collecting outstanding fees from other businesses or individual clients? Consider contracting a commercial debt collector for business-to-business (B2B) customers and a consumer agency for individual clients.
Their technology
If you need to collect numerous fees, ensure your collection agency uses advanced technology that allows you easy access to the status of your accounts.
Furthermore, ensure your agency uses advanced software to safeguard your data. Collection agencies work with sensitive data and must be SOC 2 Type II certified.
Their efficiency
Because fast debt collection can do wonders for your cash flow, you’d want to work with an efficient agency. Steer clear of companies with long onboarding processes, extra costs, and a need for your continual input.
Their customer relations skills
Debt collection is a sensitive issue. The firm you partner with should work tactfully. Choose an agency that will treat your customers with respect and abide by the law. Good customer relations will give you the best chance of continuing business with your customers who have settled bad debts.
Their reporting
An outstanding debt collector is accountable and transparent. They should provide regular reports. You should stay in the loop, knowing the firm’s recovery rate and how they are improving their efforts.
FAQs on debt collection agencies
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How do debt collection agencies help businesses?
Small businesses and multinational corporations rely on debt collectors to round up outstanding client fees. A superb agency knows how to recover debt efficiently, allowing businesses to improve their cash flow.
Handing over your debt-collecting responsibilities to a third party with the resources and expertise to collect debt quickly frees up your time to focus on your core business goals. With enhanced cash flow and more time, you can grow your business.
If you choose a professional agency, you can rest assured they’ll handle your customers with dignity and respect. These agencies implement impactful strategies to ensure professionalism — and high recovery rates.
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How do you choose the best debt collection agency?
When you start your search for an outstanding debt collector, ask yourself the following questions to help you find a well-suited agency.
Is the firm licensed?
To ensure your customers are treated ethically and professionally, you’d want to hire a licensed firm. Check that the collection firm has the necessary licensing in the areas where your customers live.
How much experience does the firm have?
It’s best to work with an agency that has significant experience recovering debt in your industry. Collection laws differ from industry to industry, and there are special regulations in sectors such as media, telecommunications, and health care.
An agency that understands the legalities of your industry can better address industry challenges and may be more effective in collecting outstanding fees from your clients.
Does the firm have a good reputation?
You’d want to work with an agency that has a reputation for being effective and pleasant to interact with. You can check for a good reputation by looking at client reviews and Better Business Bureau (BBB) ratings.
How big is the agency?
There are multinational debt collectors and small local agencies. Consider your business’s size and find a debt collection partner whose capabilities match your company’s needs.
What is their fee structure?
Debt collection firms might charge a flat fee or a monthly tariff for their services. When deciding on a fee arrangement, consider the number of debts you need to recover, the amounts owed, and your company’s size.