Selecting the right debt collection agency

To select a service provider you need to define what you want the agency to achieve, be aware of how you are going to assess the response you get to your approach and be clear how you are going to manage the relationship with them.  You need to be sure that there are organizations that are both interested and capable of developing a strategic relationship with your business.

Selection begins once the initial goals are defined and the planning is under way.  It ends when the contract is signed and the transition from the current regime to the supplier begins.

During the selection process the specification of the debt collection service should be developed with a quantified baseline, growth plans and trends.  The contract management structures should be outlined and candidates should be identified to fill contract management roles.  The evaluation process and framework and devising evaluation criteria should be established at this stage as well.  Once the organization decides to get the right service provider you could allow that company to set the baseline.  However, if you don’t have a baseline you will never know whether you are achieving benefits or not.

Once all the objectives have been set, you will have to define how you will work with the service provider.  It is useful to start thinking about this relationship while producing the specification and developing the baseline.  You should not look for characteristics that you like but also whether they have the coverage you need: geographic spread, technical ability and good processes.  Past history with good site references and valid experience could also prove helpful but ensure that you can define what you want.