When you have a collection problem, you need to find a debt collection agency to do it for you. Having an experienced debt collection agency in place will take away the stress and the burden from your shoulders. It does not matter whether you are a large company or an individual owner of a small business; it is necessary to have a debt collection agency in Toronto to help recover money from delinquent accounts.
However, hiring one can be time-consuming for you and troublesome if you don't do it right from the start. That said, let's see some questions to ask from the potential candidates to ensure you hire the right one.
5 Questions to Ask a Debt Collection Agency in Toronto:
Do You Specialize in My Industry?
When seeking a debt collection agency in Toronto, you should know what kind of industry they've dealt with in the past. For instance, if you are in the construction business, then you need to consider those agencies that are experienced in handling construction-related debts.
If you are in the wholesale business, then it is advisable to seek collection agencies that have recovered debts in the wholesale space. Avoid the agencies that say all industries are the same – they're not.
Can You Provide References?
The best way to find a good collection agency in Toronto is by checking its previous clients. The best way to do this is by asking for their references.
The debt collection agency should be able to provide you with at least three references to prove its credibility.
Are You Insured?
There's a possibility that the debt collection agency gets sued by the debtor. In this instance, your collection agency should have Professional Liability Insurance.
Although the Canadian government does not require it, this coverage will protect the agency while it's working on your account(s).
Do You Have the License For Collection in My Debtor's Area?
All consumer collection agencies in Canada need to be licensed and incorporated within the debtor's province. Furthermore, the agency needs to be licensed under the legislation of the province and post a surety bond.
Ask your collection agency in Toronto if they're licensed and bonded in the debtor's province or territory; if they're not, you need to look for someone else. You can also search any agency by name on the websites of each province and territory to ensure they're not lying to you about being licensed there. Here are the links:
Can You Find a Disappeared Debtor?
Debtors can be pretty hard to deal with, especially when they're not in the position to pay or don't want to pay. They can even move around to disappear from your radar.
Therefore, you need to be sure that your debt collection agency in Toronto can access the debtor's records to obtain their whereabouts legally.