Getting down to the brass tacks and logistics of business, there are 2 things every business has in common; time and money. Every business wants to make as much money as possible in as short time as possible for as long as possible. Words like continuity, longevity, and success come to mind when these factors are mentioned. However, what happens when the world turns against you and you are left with in the dust watching your client ride into the sunset with your product and the money he owes you in his hand? Well, it would be time to get some professionals involved.
The first and biggest question that should be in the forefront of your mind when making decisions about your business is “who or what is handling our assets?”. What we must do is first look at the qualifications and risks that go into what will yield the best results of getting your hard-earned cash back.
Not all collection agencies are the equal. Some collection agencies technically don’t have their own collectors. They hire subcontractors through a separate company but work exclusively for the agency that they are hired too. The I.R.S and most state revenue services do not tolerate this whatsoever. Although it just doesn’t stop there; their risk extends to you as well. Most of these subcontractors lack errors and omissions insurance and they are typically missing licensing, bonding and insurance in the states that they are practicing in. To distract you from the risk, they will try to deceive you with low rates and hopeful promises that they just can not pay out on.
Watch out for agencies with a lack of accreditation. Some certifications from major organization can show the legitimacy of the agency and create a sense of security after they have been under the scrutiny of these organizations. For example, The Better Business Bureau will look into their regulatory complaints and how they handle their money, promptly releasing a grade deeming their quality of business.
Here at Kearns, Brinen & Monaghan we pride ourselves on being one of the top agencies in the business. We are 1 of 31 agencies in the world that are certified through the IACC (International Association of Commercial Collectors) and CLLA (Commercial Law League of America). This honor is a guarantee of quality business where high morals and good ethics are a timeless tradition. In order to become a member of these prestigious groups, an agency must submit itself for a full review including background checks of officers and an audit of all bank accounts and trust accounts.
Choosing a collection agency is the first step into protecting your bottom line and investing in your future. A good agency is not cheap to find and a cheap agency is not good to find.