Online Access- The better collection agencies offer a suite of online services, including basic account management, status checks, payment details, new account submission, and more. Some collection agencies even provide the ability to create an account, make payment and all other functions completely online.

How to find the best collection agency for you
Clearly, the choice of the best collection agency for you will be based on your particular situation, budget, and collection needs. Looking for a collection agency online is a great way to research and compare several collection agencies to make sure you find what that will work for you based on your situation. However, finding the right collection agency for you might take some additional effort on your part. Unlike most web sites and industries, many collection agencies do not describe their fee structure on their web sites, but require you to fill in a form or contact them for an initial consultation. Our best suggestion is to do as much research as you can online, identify several collection agencies that seem like they would work for you and then only contact those you're interested in for more information. Then you can begin comparing them by other factors, such as:

Collection fees- as mentioned earlier, most collection agencies charge fees on a contingency basis as a percentage of the debt that they collect for you. Typical collection charges range between 10% and 50% of the recovered amount and are dependent on both the size of the debt (small debt=large commission- large debt= small commission) and the age of the debt (old debt=Large commission, new debt=small commission). For some small debt amounts (usually less than $250.00), you might be charged a flat rate for a defined series of letters and/or calls. Some collection agencies may give you the option of paying a lower flat rate up front and then a percentage of the recovered amount. Some collection agencies (normally those who specialize in commercial collections) will require a minimum file per account opened.

Geographic coverage- the licensing requirements of collection agencies differs from state to state. Some states require collection agencies to obtain licenses before they can pursue debtors located in that state, while others require different licenses for agencies headquartered in their state. If you have debtors in more than one state, make sure to find out how they will handle this situation. Sometimes, collection agencies will refer out of state accounts to collection agencies in other states. If you need collection services outside of the US, see if you can find a collection agency with foreign operations or licensure or look for an in-country collection agency.

Insurance- a liability insurance policy is a good business practice for any collection agency since it can help protect both you and the collection agency against frivolous lawsuits from unhappy debtors who resent your collection efforts.

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