Any business that does not have the necessary resources to collect bad debt is greatly benefited by the services of collection agencies. Collection agencies have the necessary skill, tools and resources to recover debt on time in an efficient and customer-friendly manner.
Collection Services are categorized according to the services they render and the type of business they work for. It is important to pick the right agency based on your industry or type of debt. Various types of services are as follows:
Commercial collection agencies
Commercial collection agencies collect financial debt for banks, retailers, auto loan financiers and credit companies. The debts could be credit card bills, auto loans, mortgage payments or other loans. Collection service buys the debt from the creditor at a pretty low rate. The creditors sell the debt because they no longer expect it to be settled. After buying the debt, the collection agency contacts the debtors and proceeds to recover a good percentage of the debt from them. This is how they make profit.
Healthcare collection services
Healthcare providers charge patients for medical treatments. Most healthcare organizations are too swamped to follow-up on payments that are delayed or not made. Healthcare providers partner with collection agencies to collect payments from customers. The collection service works out a debt recovery strategy in accordance with the healthcare provider’s business policies and debt collection laws. The collection agency gets a percentage of the debt recovered from the customers.
International collection services
This kind of agencies will provide international debt collection services in multiple countries. This is extremely useful when the company or person that owes you money isn’t in the same country.