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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