Choosing An Accounts Receivable Management Company

The Commercial Collection Agency Association estimates that the probability of collecting the full amount of a receivable that is already six months past its due date is approximately 50 percent. As the payment becomes more delayed, the lower the probability that it becomes completely settled.

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Thus, if a business decides to acquire the services of an account receivables management company, it should look for one that is reputable and effective. Here are some tips on how to choose:

Check the company’s collection methods: How the collection company interacts with debtors can affect its business’s relationship with its customers. It is prudent then to evaluate the ways the agency employs to make sure that it treats delinquent customers appropriately or ethically. It also helps to know the precepts under the Fair Debt Collection Practices Act (which covers consumer debt) that all collection agencies need to abide by or to check if the agency is certified by the Commercial Collection Agency Association.

Assess the company’s experience in your particular industry: Collection of accounts receivable differ from industry to industry. Therefore, the agency should be able to prove its expertise in working in the particular industry and its knowledge of the specific regulations and standards.

Review the company’s innovative and creative practices: Collection agencies have to invest in updated tools, resources, and technology to ensure highest returns and to adapt to ever-evolving markets and customers.

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Receivables Performance Management is a national leader in accounts receivable management, which handles accounts a wide spectrum of industries, treats customers with dignity and respect, operates in accordance with federal, state, and local collection laws, and uses top-of-the-line operational processes. Learn more about the company here.