1. Ensure that the debt collection agency you have chosen has a Consumer Credit Licence and Data Protection registration. Any bone fide agency will show you the necessary documentation to verify this.

2. Check that the debt collection agency belongs to a trade association such as the Credit Services Association (CSA) or other recognised industry body.

3. Check the trading record of the debt collection agency. Agencies, just like any other business, can be credit checked.

4. Ask the debt collection agency to provide references from satisfied clients, particularly in your industry sector. Can contact names and telephone numbers be given for verbal verification?

5. Check the debt collection agency’s trade association code for reasonable times for return of collected monies. Any reputable agency should be happy to show a potential customer its association code if requested.

6. The debt collection agency must have clear terms and conditions detailing costs, methods and indemnification.

7. Fee structures can be flat fee or percentage. These fees must be reasonable and competitive and suitable for your particular debt situation. Ensure that you ‘shop around’ to find the most appropriate agency for your needs.

8. Does the debt collection agency offer back up services such as litigation tracing, status reporting and consulting on terms and conditions? If so, check whether their costs are controllable.

9. Ensure that your contact with the debt collection agency is polite and professional. How it approaches and deals with you will reflect on how it deals with your debtors/customer base.

10. If your customer base includes overseas businesses, ensure that the debt collection agency has the appropriate language skills to liaise effectively with them.

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