How to identify the best debt collection companies
Collecting overdue invoices from customers can be a difficult process, and there may be times when your in-house efforts may not be successful or consuming too much time. In these cases it’s important to act quickly to secure professional help from a trusted debt collection company.
The timely collection of outstanding payments is important for businesses of all sizes, as it has a direct impact on cash flow and prevents bad debt. A good debt collection agency will also help you maintain customer relationships and give you back the time to improve your internal credit control. So how can you identify the best debt collection companies?
Debt collection agencies in the UK can vary. They may use different methods to recover outstanding payments (some prefer mediation while others favour the legal process), or be more experienced in different industries, so it’s important to research the best debt collection companies for you.
Here are a few key signs that a debt collection agency is worth talking to.
Regulatory bodies offer reassurance to businesses that they are working with a company that follows guidelines and meets an accepted standard. If the debt collection agency is authorised and regulated by the Financial Conduct Authority (FCA) and a member of the Credit Services Association (CSA), it’s a great sign that they follow best practice and meet the standards expected when recovering monies owed by a wide range of businesses and individuals.
Transparency and an easy dialogue are important attributes for any company you work with, but even more so when you know that company will be handling some of your most important communications. A good debt collection company will be open and honest with you about their approach to collecting your debts, explain their pricing and provide regular updates with regards to their activity, for instance by way of a client area on their website.
Industry accolades are often a good sign that the debt collection company in question is well respected in the field, whether from organisations like the Chartered Institute of Credit Management (CICM) or industry magazines. These awards often require the agency to prove their success rate, demonstrate high performance and gain testimonials and case studies from clients.
A well-established debt collection company with relevant industry experience can often add a lot more value to your business. How long have they been trading for? Do they have experience of recovering debts from your sector? What background do the team and company directors have? Experienced agencies will typically have more insight into the right approach to take with your late paying customers, and are more likely to understand how your business operates.
Case studies, references and reviews are all worth looking into when you’re looking for the best debt collection company. Not only will they show how successful the company has been in the past, they can also be an indicator of the types of business they usually work with, so check out any case studies on their website or Google reviews.
What does Hilton-Baird Collection Services offer?
At Hilton-Baird, we have a long track record of delivering excellent results for our clients, having been providing a wide range of debt collection and credit control services since 2001.
We’re relied on by a variety of clients, from start-ups to large corporate entities, as well as the biggest banks, asset based lenders, Insolvency Practitioners and business loans providers across the UK and Europe.
As well as being authorised by the FCA and members of the CSA, we have also been voted Third Party Debt Collection Team of the Year at the CICM British Credit Awards in both 2018 and 2019, and have celebrated many success stories with our clients over the years.
If you currently have outstanding debts and you’re looking for the support of a debt collection company, get an instant quote or give us a call on 0800 9774848 to explore how we can help.