Payment collection BPO service is vital to businesses. It is somehow a sensitive issue, requiring agility and insight. And that’s why you should have smart and skilled payment collection professionals.
However, the thing is how to choose a reputable payment collection firm. Explore the 5 keynotes below to have the answer.
Consider the total ROI, not the initial price only of each payment collection BPO service
The payment collection service percentage charged by a BPO service is just one factor to consider when deciding on a partner, but what’s more important is how much cash that service will put back into your account.
Many payment collection firms charge a straight percentage of what they can collect, but the results they achieve on the accounts they collect vary widely. A low agent percentage incentivizes work on easy-to-collect debts and may ignore others.
A payment collection BPO service with a low fee rate and low collection percentage will not be as profitable as a company with a higher fee rate and better recovery rates.
Consider customer service
Gone are the days of payment collection where collectors insult and threaten debtors, and a professional payment collection BPO service won’t do that. They will focus on helping clients to pay their debt fastest through multiple channels with a clear, logical payment plan.
Look for a partner who can provide you with early payment notices in the life cycle of a debt.
Find a trusted partner, not a debt collector
Think of finding a trustful payment collection BPO service as if you are looking for a trusted partner to generate your business. A payment collection partner should work closely with you to develop a receivables management system to increase your bottom line.
Payment collection services are experts at debt recovery who will work with you to improve your in-house collection efforts. Some payment collection firms will lessen the risk by managing credit checks on potential clients, or help implement pre-collection measures at regular intervals.
Refer to previous clients’ feedback
The best information will come from previous clients when considering hiring any service. You can ask a company to provide their previous clients’ references to have a better glance. Here are some helpful resources to look for feedback:
- Accounting firms
- Business contacts
- The Chamber of Commerce
- The Better Business Bureau
In addition, collection laws vary across industries, so you should find a company with experience in your industry. They are well-equipped to deal with your industry’s unique challenges, and they also use that information to improve resilience while maintaining a compliant system.
Evaluate payment collection BPO service’s report
Many payment collection BPO services don’t regularly report collection rates. It’s best to request a monthly statement and payment on any accounts, and request access to an online portal where you can check the recovery rate.
An excellent payment collection BPO service can do wonders for your cash flow. Having thorough due diligence before deciding will ensure you find a partner that gives you the best results.