Experts in Debt-Recovery.
Specialist Advisors on Credit and Distressed Debt

Selecting the right kind of debt collection service provider is critical for your financial and brand well-being

With banks issuing more and more credit, unsecured retail lending is at an all-time high. With debt levels continuing to grow, and payment patterns continuing to deteriorate, how will you collect outstanding debt without damaging your reputation and your brand?

For the savvy creditor, it’s important to know how to manage these risks upfront. It’s also very important to select a company that won’t damage your reputation.  Done the wrong way, you could be headed for serious financial and brand implications.

The goal should always be to create a sustainable collections process.

This is why strategy is so important in collection. Do you want to collect and walk away, leaving no goodwill?  Or collect, retain and rehabilitate?  Do you want the debtor to come back for more credit?

When selecting a company to manage your financial and brand well-being, it’s important to look for a company that will partner with you from the beginning and advise on the correct management of giving credit and collecting debt. We’ve seen how important it is for the sales people to understand a product and its target audience. Targeting the right person reduces the risk of no payment down the line and getting a complete picture of the potential debtor helps you take more calculated risks. In addition, consultants should get as much personal information as possible up front, to help with possible future collections.

In brief, we firmly believe there should be a debt collections strategy put in place right at the beginning of the credit-granting process. This creates consistency, good  policy and ensures proper training takes place at every level of an organisation—from the CEO down to the sales staff.

Mark’s advice for choosing a debt collection company:

  • Reputation, trust, and honest communication.  Just as with any other relationship, these are qualities you should be looking for in a good debt collection company.
  • Do your homework.  If it is a new relationship, ask to see a track record. Or ask around to find out what they’ve done for other creditors; spend time to investigate how they compare against their competitors. Word of mouth still carries a lot of clout, as does some time on the Internet or Social Media.
  • Be up front about your goals.  Debt collection is a test series not a one-day game. As the debt collection company gets a better understanding of your business, the success or run rate will spike.
  • Think long term.What you’re looking for is a long-term strategy that will yield incremental improvement. It’s not a quick win, although you may pick up some quick wins along the way.
  • Ask the tough questions. Has this debt collection agency done damage to other brands? Do they butcher the debtor or do they strive for rehabilitation?
  • Protect your reputation. As you enter into any partnership with the debt collection agency, remember to protect your own reputation. Choose a company that is scrupulous, fair and respectable.
  • One size doesn’t fit all. Spend some time looking into the approach the debt collection company follows. They should offer flexibility and be ready to address your unique needs. Some companies have strong legal backgrounds, others are bias towards business; you need to decide which one would be right for you.

“A promise made is a debt unpaid.”— Robert Service
Remember: a reputable company will always make good on their promises.

Choose a service provider with a firm understanding of the credit granting process, backed by years of expertise and a proven strategy that will enhance the effectiveness of the collection process - as well as your brand’s reputation.