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I find that many business owners and managers find it difficult to make the decision to place an account with a professional collection service. It is always an unpleasant experience to give a portion of your money to a third party to collect something that should have already been paid. However, the grim realty is that debtors do force businesses to make these decisions. There are many factors that should to be considered when selecting a collection service.
A collection agency will be handling your money so be sure that not only are they licensed but bonded as well. Find out how long the agency has been in business, like any profession there are “fly by nights.” Ask for references and check them out. Find out what credit reporting agencies if any that they report to. How do they handle debtor disputes and what attorney they utilize? Is the attorney a collection attorney and how many years has he been practicing collection law.
Ask what their percentage of recovery is on accounts like yours. Every type of account is unique from medical collections to dishonored checks. Any agency that has experience should be able to give you the average recovery for your type of collections. This is never etched in stone since so many factors affect the ability to collect an account. Some factors considered are the age of the account, type of account and contractual agreements.
Frequently, when seeking the services of an agency the only question that is asked is the collection fee and that is the deciding factor. There is much more to take into consideration. What good is an agency that charges a low collection fee but does not collect the money? As most business owners and managers are keenly aware of, you can’t provide a quality service without charging for them.
Some agencies have a membership fee or set up fee and some work strictly on contingency. Other’s will send out a series of letters for a nominal fee plus will add a collection fee if they need to make phone calls. Request information in writing from the agencies you are researching and ask questions. You want to find an agency that will be an extension of your business and will handle your accounts in a professional manner and achieve results at the same time.
(Editor’s Note: Paula Bartlett is the owner of Saba & Associates, a Poulsbo-based collection agency specializing in business and medical collections. Reach her at 360-698-1432.). | 
