I’m not hesitant to admit it. There is a longstanding stigma around my industry.
It’s one I’ve been working my entire career to mitigate, while a few others have seemingly focused theirs on perpetuating it. And so, questions and misconceptions surrounding collection agencies continue to exist.
Despite that collection agencies are used by some of the biggest, smartest, most reputable businesses in Canada (many of whom I am proud to call MetCredit clients), from telecom giants to major banks, manufacturing leaders and retail chains, we continue to be a little misunderstood. And entrepreneurs still ask me: “why would I use a collection agency?’
To understand why collection agencies are so effective, you must first recognize what we are not, versus what we are.
We are not heavy-handed bill collectors who operate out of dimly lit offices and extract payment by threatening or intimidating debtors.
We are ethical professional negotiators and problem-solvers, with deep experience and expertise at achieving one very important business function: getting our clients paid. We only make money when we are successful, so we must consistently be successful. At my agency we pride ourselves on respect for the individual, at all times. RESPECT is our longstanding corporate mantra – if I had a tattoo it would be that.
Collection agencies are used by some of the biggest, smartest, most reputable businesses in Canada, from telecom giants to banks and retail chain stores.
Here are four traits that define the advantages of a great collection agency:
1. Efficiency
With every task a collection agency does, efficiency is paramount. We are experts at streamlining processes, working efficiently and getting the job done very quickly.
2. Leverage
When a file goes to collections, we report the debtor to the national and regional credit bureaus. Many agencies offer credit reporting, but only MetCredit reports to all 3 national credit reporting agencies as well as specialized regional credit bureaus. By doing so, we motivate debtors to pay promptly and help businesses like yours be aware of risky accounts.
3. Value
Because collection agencies receive a flat rate commission that’s dependent on our success, the agency pays all costs up-front. As soon as you turn an account over, you stop worrying about it and can focus on what makes you new money. Compare this to retaining a lawyer, where you incur legal fees, disbursements and court costs from day one, and are on the hook win or lose — plus you must still collect on a court judgment if you get one! Litigation is seldom necessary, and takes a lot more time and money.
4. Specialization
A collection agency does one thing very well: we collect overdue debt. Our collectors are trained negotiators who are skilled at finding solutions to the barriers debtors face in paying bills.
The short answer to the question of why use a collection agency: it works.
For helpful insights into the world of Canadian collection agencies, as well as tips and advice to collect fast, avoid trouble and save money, use the link below to download my brand-new guide.
