There are two primary debt collection philosophies:
- Professional yet firm.
- Forceful and intimidating.
An important consideration before hiring an agency is to determine which philosophy is right for you and your collection needs.
The PROFESSIONAL YET FIRM agency is right for you if:
- You want to maintain relationships with:
- Your business customers
- Your medical customers
- Your school customers, etc.
- You believe this will be the most effective approach in your situation
- You are concerned about negative publicity
- For example, you do not want complaints to appear on the internet or in local newspapers.
- This approach matches up well with your business philosophy.
The FORCEFUL AND INTIMIDATING approach may be right for you if:
- You believe it will be a more effective technique for dealing with your particular debtors.
- Maintaining a customer relationship is not important.
- Your claims are very small and a lot of effort can not be justified, so the collection agency needs to hit the debtor hard and fast.
Next: The Collection Process
How to Select a Collection Agency