||Credit personnel in every industry are
besieged almost daily by representatives of collection firms across the country. While
this may be a constant annoyance, the fact remains that the services which are offered by
a professional collection firm are a must for any company extending credit. The following
suggestions are offered as an aid to assist you in quickly weeding through the numerous
solicitations you receive to select the firm which best suits your needs and exemplifies
your company's policies:
YOUR INDUSTRY - do not hesitate to question the firm to whom you are
considering turning over your delinquent receivables about their
experience within your industry. The best indication of that firms ability
to service your accounts is the extent of their experience. Ask for a list
of industry references and talk to several people to make sure they are
pleased with the service.
||INTEGRITY - A) Request information on the
backgrounds of the principals of the firm. In contacting references find out how long they
have been doing business with the firm and/or principals. If practical, request to meet
with a member of the firm personally. B) Determine the length of time monies are held on
deposit in escrow in the firm's special client account before remittance. Make sure that
monies collected are maintained in a separate account.
||PROFESSIONALISM - when turning an account
over to a collection service, remember that they are acting as an extension of your firm.
As a result, you should make sure that their practices as your agent are ones with which
you are comfortable. If you like, ask for a sampling of dunning notices which are sent and
a presentation of telephone demands.