How to choose a debt collection partner
A debt collection company helps secure faster payment, but can also contribute more to your organization. Consider your needs and how your debt collection agency can help you meet them.
Time is money
How quickly can a debt collection partner collect payment? This will vary, depending on the size and complexity of the claim and whether there are any disputes. The product, type of account and geographical location of the customer can also have an effect.
Ultimately, the more information you can provide about the person who owes you money, the easier it will be to recover your claim. A reputable debt collection agency will be able to provide insight into the average number of days it takes to resolve a case.
Data processing
How companies handle customers' personal data has always been important, and with GDPR, there have been even stricter requirements for handling and accessing data. Any debt collection agency should be able to document how they use your customers' data. This information should be available to everyone - and preferably on their website.
Some debt collection companies offer a self-service portal where your customer can see an overview and the status of their account, without having to make direct contact with the debt collection company. Such a platform should be user-friendly and easy to use.
Digitisation and data-driven solutions
Consider the value a debt collection partner can offer, in terms of additional services and use of data. Most debt collection companies hold large amounts of data, but how do they use it? For example, do they develop specific products, or use data for customer segmentation? Good use of data will mean your partner understands market trends and how to adapt communication with customers accordingly.
Increasingly, customers also expect digital options for communication and payment. Finding a partner that has invested in these technologies will enhance your customers’ experience.
Look at the whole value chain
It is important that you feel that your customers are well taken care of. You should therefore be able to ask the debt collection company what tools they use to collect your claims and measure satisfaction with your customers, as well as what steps you can take in your own credit management process.
Look at the total value chain that the debt collection company offers. Solution rate, credit time, payment options and customer experience are all factors that will have a direct impact on the bottom line and reduce losses.
What are your needs?
Every business has different needs. It is important to consider your requirements in terms of the volume and type of cases and the stage at which you require assistance. You may need help sending reminder letters at the early arrears stage, or perhaps legal solutions later in the collections process. Having a partner that can provide services at all stages of the credit lifecycle gives you ultimate flexibility.