We’ve previously posted about criteria you can use to ensure you’re picking the right collection agency. This decision is one that should be made carefully, so we advised you to be sure to check the agency’s reputation, associations/affiliations, and training policies.
That’s just the tip of the iceberg, though. It’s important to look beyond the agency’s basic reputation and policies and ask what they really offer you to aid in the success of your recovery efforts. Here are 2 state-of-the-art services your collection agency could be using to help improve your return rate:
- Skip Tracing
It’s not easy to collect from a debtor who has skipped town! Yet you can still have hope of doing exactly that if your collection agency offers skip tracing. Like a good detective, skip tracing can be employed to find a subject whose whereabouts have become unknown. It is essentially a data collecting and analyzing service, using such resources as credit reports, job application information, criminal background checks, utility bills, phone number databases, and social security, disability, and public tax information to find a person who skipped out.
Does your collection agency double as a detective?
- Account Scoring
Time is a precious commodity, and when it comes to collections, the most time should be focused on the accounts most likely to get paid. That sounds like basic good business, but how does your collection agency ensure they’re focusing on those accounts?
Like most agencies, Optio Solutions does this with an account scoring service. In addition, Optio Solutions has a proprietary in-house scoring program which examines 100 attributes of each account. Each of your accounts is rated on its collectability as compared to other accounts and thus given a recovery score. Scoring models are developed by analyzing economic, demographic, social, and account activity information, and then weighted by recovery data indicators. Scores are highly predictive of a debtor’s ability and willingness to pay a given debt, thus helping an agency determine what the appropriate amount of effort should be for that account. This provides a solid basis for the right recovery strategies and eliminates redundant and unproductive efforts.
Has your collection agency zeroed in on the right accounts?
Improved Profit Recovery
So look for these essential services from your collection agency: skip tracing and account scoring. Some, like Optio Solutions offer these for no additional cost as they are strategically implemented to improve recovery rates. These are great services that add to your success, so make sure they’re being put to work for you!