How to Outsource Collections to India

The reality of doing business is that some clients will not pay their debts once your service has been provided. This can be true of individuals as well as other companies doing business with each other. You can cut down on in-house staff time dedicated to debt collection by outsourcing your account receivables to a collections agency in India.

Things You'll Need

• Lawyer or attorney
• Collections data

Instructions

Outsource Account Receivable Collections to India

1. Investigate the collection agency market before deciding on an offshore collections agency such as those located in India. You should be aware of the standard market rates for collection agencies operating inside and outside of the United States. Typically, these companies charge a commission rate or a flat fee that may vary based on the age of the debt as well as its size.

2. Ask for a detailed account of the collections practices of any collections agency you work with in India. Though you do not need a in-depth knowledge of fair debt collections practices, it helps to be aware of things debt collectors can and cannot do in the effort to settle an invoice.

3. Talk to your colleagues within your industry to get recommendations for collections companies in India that have provided satisfactory results. Though cutting costs is typically at the top of the list when companies consider outsourcing, the successful practices of any company you outsource business to should also be considered in your decision making process.

4. Confirm that the collections call center you outsource to will be operating during normal business hours for the area in which the bulk of your clients live or work. Remember that though India is in a different time zone, debt collectors must operate under the guidelines of the Fair Debt Collection Act of the United States which prohibits calls before and after certain hours of the day.

5. Be prepared to give your new collections partner all the information he needs to make collection of your debts a reality. This can include detailed information such as statement of accounts and copies of invoices (paid and unpaid). You should also include copies of any prior correspondence between your company and the debtor as well as any prior agreements made by your company and the debtor in relation to the debt to be collected.

Tips & Warnings

• Obtain the advice of an attorney before you outsource your company's debt collections. The collections business is fraught with legal concerns and the savvy business client will be aware of any legislation which may effect the type of debt he is attempting to collect.