How To Choose The Best Debt Recovery Agent

Referring to overdue accounts in a transaction can be a cumbersome task. Many lenders, therefore, take the help of professional debt recovery agencies. However, it is important that the agency that you choose is capable of recovering the debt without ruining your reputation with the debtor, and at the same time remitting the recovery to you quickly.If you feel the recovery process is an uphill task, then here are some tips that can help you make the right decision in choosing a good debt recovery agent in the UK.
Remember to select only licensed debt recovery agencies. A leading UK debt recovery agency has a commercial license and well chalked out recovery rules that are in tandem with the laws of the land. It is sensible to pick an agency that has licenses across all the states. Such an agency will enable you to recover your money even if your debtor relocates to a different state. An agency with a world-wide network and an established office is the best bet for a commercial lender.
Besides checking on the debt collection agency’s license, it is also important that your chosen debt recoverer is well insured and bonded. This will ensure that your business is not jeopardized in case of a lawsuit or any other exigency. Besides, many licensed agencies are also linked to solicitors who advice the legal route in certain circumstances. If your agency is equipped to take up the responsibility for liaisoning and reasoning, it can go one up in your favourability.
Ensure that you understand the fee structure of every shortlisted agency and prefer what is most suited for you. Some agencies may ask for a flat upfront fee, while some others may prefer a percentage of the recovered debt as pay. If you are dealing with just one or two debtors, paying a percentage is a worthy option. However, if your chosen agency is expected to recover overdue from several debtors, a flat upfront payment may work out cheaper.
Some leading debt recovery agencies in the UK are equipped with advanced software that allows them to screen your debt portfolio. This helps them analyse, which debts are easier to obtain and worthwhile to recover. Such predictions can help you make wise and strategic recovery decisions.
Ensure you are clear with the remittance rules and schedules of the agency of your choice. Your agency should remit the recovery to you as soon as it collects it from your debtor. It is important that your agency allows you to view your account online as this will help you monitor the recovery progress.
Many debt recovery agencies in the UK also have processing chains that allow them to track absconding debtors. Such agencies can give you ample leverage in recovering your money. Besides, the government legislation permits the collection of an interest amount on the late payment of certain commercial debts. If you are eligible to claim such a benefit, you must ensure that your debt recovery agency is appraised and collects the due amount for you.