What are the qualities you should look for in a Debt Collection Agency?
If you are interested to work with a debt collection agency, there are some key qualities that you should look for that they possess. The following are 5 traits that are necessary to any legitimate collection agency!
Communication
Open and honest communication is key to a successful debt collection agency. When you are partnering with a Debt Collection Agency, you want them to be transparent in every aspect of your accounts. They should tell you at what point of the process your accounts are in and what is the next step. Also, they should be able to clearly communicate on your behalf thereby resolve problems more effectively.
Results-Oriented
An effective Debt Collection Agency is very focused on achieving a goal. Aligned with the client’s goal, they are determined on delivering results that truly matter. They are focused on what needs to be done, no matter what it takes. They understand that their success is linked to the client’s success and therefore aim to achieve their goals whatever it takes.
Relationship Builders
It is rather challenging to maintain a good business relationship during debt collection. This is because the lender may end up being difficult that the debt agency may use ways that may ruin the relationship between your business and your client.
Therefore, work with a Debt Collection Agency that knows how to apply proven ways to take the debt without making the client feel disrespected. Some agencies use harassing and unscrupulous approaches which may be effective in getting your debt back, but in turn will ruin your business relations.
Negotiation
A reliable Debt Collection Agency is an excellent negotiator. Through negotiations, they can resolve issues since most of them arise from unmet needs. Therefore, the solutions you suggest must have your clients’ needs at heart. They must also be assertive. They should be able to set aside personal judgment and withhold blame in order to fully understand your clients’ situation.
Persistence
An excellent Debt Collection Agency also knows and fully understands that there is no overnight success. To be successful, they define their goals clearly and are persistent in carrying them out. They follow a proven methodology. They are consistent and knows how to follow-through. They should be persistent in calling the clients until they make the payment.
According to a report, late payment is common in Saudi Arabia. In practice, the law does not regulate late payment, while payment interest is prohibited, and collection costs cannot be recovered from the debtor unless a specific agreement has been concluded by the parties. As a result, debtors will often try to negotiate discounts in exchange for prompt payment.
Local legal action is very slow, costly, and uncertain overall, since the courts are not bound by a system of precedent and have considerable discretion in applying Shariah principles to specific circumstances. In addition, several weeks or months may separate each hearing and the courts hardly abide by time management requirements.
Insolvency laws in the Middle East are not as sophisticated as in other regions and the nonexistent company rescue culture in Saudi Arabia illustrates this point.
Debt collection is a very important issue that has its tools and methods that only experts and practitioners in this field can master. At Fuel Collection, we are specialized and qualified because we have the infrastructure designed to handle everything related to debt collection, from friendly communication with debtors to pleading and litigation when necessary.
Are you interested to partner with a Debt Collection Agency but don’t know where to start? Feel free to contact us! We offer free consultancy. Call us at +966 13 812 9100.
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Office 602, 6th Floor Aledad Tower, Al Muntazah, Dammam, 34242, Saudi Arabia
Fakhry Tower, L 8, Prince Saud Al Faisal St- Al Rawdah Dest, Jeddah, Saudi Arabia
Al Anoud Tower, L 18, Office 1802 King Fahad Road, Riyadh, Saudi Arabia
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