CREDIT MANAGEMENT
HOW DO YOU
SELECT THE RIGHT
COLLECTION
AGENCY?
By Wasilwa Miriongi
T
he question the reader may wish
to get the answers is what entails
a debt collection agency? A debt
collector is someone who regularly
collects debts owed to others. This
includes collection agencies, lawyers
who collect debts on a regular basis
among others.
As a proprietor of a collection agency
I have once and again been asked
questions which do not relate to the
criteria of selecting collection agencies.
As a matter of fact the questions asked
just clearly reveal their fear of using
debt collectors, lack of understanding
of the collections practice and
collection policy as a whole.
Just like the Bible says every man is a
potential sinner, every business large
or small as long as they use credit as
one of their tools of trade, will have
a collection issue. Despite their best
efforts, some accounts will fall in
arrears. Some customers will simply
not pay. And, like a rusted bolt, they
are just not going to budge. So they
‘‘ Just like the Bible says every man is a
potential sinner, every business large or small
as long as they use credit as one of their tools
of trade, will have a collection issue. Despite
their best efforts, some accounts will fall in
arrears. Some customers will simply not pay.
And, like a rusted bolt, they are just not going
to budge. So they reach out for a tool with
added torque to get things moving; an outside
collection agency will do.’’
42 MAL 13/16 ISSUE
reach out for a tool with added torque
to get things moving; an outside
collection agency will do.
As studies have shown, collection
agencies offer the best odds of
obtaining the most net money even
after their fees are deducted. It is always
advisable to hire a collection agency
that specializes in collecting debts in
the industry you are in. Often they
have encountered the debtor before and
know who to speak with and how to
motivate them to pay.
The organisations that claim that
thei r internal debt collection is perfect
either lack collection management
techniques or are averse to change.
The latter being the common scenario,
most organisations in absence of proper
guidelines to using debt collectors
usually are very dismissive and show
utter contempt.
All said and done it is important
that a choice should be made within
a reasonable time, usually within
the first 45 days after the due date.
In some countries that have set up
regulations, there is a suggestion or