commercial in nature, you might want to consider a collection agency that focuses on commercial collections. This is because commercial accounts are usually larger and more complex with more technical aspects involved, and the collection agency needs to be experienced in mediation techniques, settlement negotiation and lawsuit proceedings. There are also collection agencies that focus on particular niches, such as government, student loans, and medical accounts, for example.

Method of Collection- The primary tool of any collection agency is the series of letters that will be sent to your delinquent debtors. Prior to hiring any collection agency, you might want to view and compare letters from several collection agencies to judge whether or not they will be effective with your debtors. Similarly, you can go over the phone scripts that the individual collectors will use in order to estimate their effectiveness and professionalism, and to find out how legitimate excuses and hardship cases will be treated. You should also find out if any other collection methods, such as email, faxes or certified mail, will be utilized by the particular collection agency. NOTE: Collection agencies are regulated by the Fair Debt Collection Practices Act (FDCPA), and cannot do the following: seize a debtor's assets, bank accounts, or paycheck unless there has already been a successful lawsuit with a judgment awarded to them; make any kind of public announcements or disclosures concerning the debt, except to the credit bureaus; get a debtor fired from his/her job; or engage in any type of physical violence or threats thereof.

Duration of Collections Process- In addition to the methods used by a collection agency, you should find out both the frequency (how often contacts will be made) and duration (for how long the contacts will be made) of the collections campaign.

Demand Services- Many collection agencies offer a free service often called 'demand' or 'final notice' that can help you avoid collections entirely. This service entails the collection agency sending a letter to your debtors who are still in your internal collections process. The letter gives the debtor a short time period to pay their debt ( usually 10 days) and provides notice that the debt will be turned over to the collection agency, whose contact information is listed on the letter. If the debtor pays within the given time period, the collection agency does not charge for the service. However, if the debtor does not pay the claim within the given time period, the account is turned over to the collection agency as an active account. This service can work well for both businesses (payment without collection fees) and for the collection agency (new business).

Credit Reports- Collection agencies can pull credit reports if the information contained therein will assist in the pursuit of a settlement and there is usually a minimal charge for generating a credit report.

Skip Tracing- If collections letters are returned as undeliverable and the debtor's phone has been disconnected, the collections process comes to a halt without 'skip tracing'.

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