Anyone operating a small business in Tennessee that provides services on credit will sooner or later have a customer that falls behind on payments. The next step the business takes will be the difference in further losses or positive cash flow.

When a business notices a customer is several months past due, panic or frustration is the typical response. After all, you provided the service or product as agreed upon, yet the customer did honor the agreement to pay by the due date.

If a business feels the customer is not going to pay, selecting a Tennessee collection agency to help recover the payment can help solve the problem.

Tips for Selecting Debt Collection Agencies in Tennessee

1. Experience– Hiring a collection agency that has a proven track record of positive reviews and referrals from past clients is essential. Many young collection agencies will close up shop and disappear without paying out clients. Confirm the agency has been established for several years with a solid track record of collecting debt successfully and operating honorably.

2. Customer Service- If a collection agency is slow to respond to inquiries to a new potential client, it can be a red flag as to what is to come. A reputable Tennessee debt collection agency will provide high quality customer service to both clients and the debtors.

3. FDCPA Adherence– The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity. If a collection agency breaks the laws set forth by the FDCPA, they can face harsh fines. Hiring a Tennessee collection agency that is eager to provide results is smart but they should do so within the laws.

Stay Local for Quality Collection Outcomes

A small business owner may be tempted to hire a collection agency with national reach and multiple offices across the United States. A national collection agency can be beneficial in some situations but hiring a local agency has perks as well.

For example, if you are a Knoxville based Fitness Gym with several accounts past due, hiring a collection agency in Knoxville that has experience in fitness gym collections would be the ideal fit. If you hire a collection agency in Memphis TN that only collects on medical debts the results would likely be less positive.

This would seem like common sense. Previously we were contacted by a Landscaper in Chattanooga. The company was owed $2,000 by a customer and he had talked to a slick talking agency out of New York City. The company decided they would prefer to deal with a collection agency in Chattanooga, TN. The main benefit is collection agencies in Chattanooga Tennessee will understand the local economy and customers better.

Lastly, if you are based in Knoxville, a company should feel better about being able to meet collection agencies in Knoxville Tennessee face to face whenever they need. The worse feeling is when a debt collection agency across the country owes your company money yet they aren’t releasing the funds.

Avoid the stress, get a risk free quote form a Tennessee debt collection agency today.