by Matt Pridemore, Vice President
Do you remember the first time you filed your taxes? Though the paperwork might have seemed daunting at first, it was ultimately no big deal because you likely only had one job, one income, and no dependents to deal with. But as time goes on, the process gets much more complicated as you add houses, dependents, charitable donations, and the like. You start to realize that you might be shortchanging yourself by missing out on write-offs, or worse yet, you might be getting in trouble for missing details somewhere along the way. So, like millions of Americans do, you find a qualified accounting professional to outsource your taxes to.
Getting your agency licensed may have been similarly simple at the start, but then became much more complicated and harder to keep up with as you grew. Many agencies do not realize that they can outsource their licensing the same way they outsource their taxes, and save their organization endless time, money, and hassle.
Organizations that outsource certain corporate functions that have historically been handled in-house (i.e. collections, licensing, IT, customer service, etc.) do so for a number of reasons. Here are a few of the more common reasons:
• Reduction of labor costs - An outsourced provider with the right volume, operating efficiencies and cost structure should be able to perform the particular operating function at a much lower cost than the organization would be able to do using their own resources.
• Focus on core business functions - Internal resources can focus more directly on an organizations core competency and reduce the distractions of operating functions that do not generate revenue.
• Operational Expertise/Knowledge - Provides an organization with operational best practice and a wider experience and knowledge base that would be difficult or time-consuming to develop in-house.
• Scalability - An outsourced provider should be prepared to manage a temporary or permanent increase or decrease in production levels.
• Reduce Liability - An approach to risk management for some types of risks is to partner with an outsource provider who is better able to provide a service that helps mitigate the associated risks.
As you are aware, each state has the right to enact its own set of collection laws and requirements. As such, most jurisdictions have very different statutory regulations and application requirements. Not to mention the fact that we are not operating in a static regulatory environment - both the regulations and application requirements are always changing. The overall cost savings that outsourcing can provide combined with the overall assurance that you are compliant in this ever changing regulatory environment makes outsourcing a compelling option if you are licensed in more than just a few states. Here are a few questions to ask when selecting a licensing provider:
Is collection agency licensing the firm/individual's core competency?
Collection agency licensing is different than most other corporate registration. In addition, the states are continually changing statutory regulations and application requirements. Just because the firm/individual has done some collection agency licensing or does other types of corporate licensing does not mean it will translate to your collection agency licensing project.
How long has the firm/individual been providing collection agency licensing services?
Relationships with the various state regulators are important and can only be developed over time. Furthermore, no two licensing projects are alike and sometimes lessons are learned through mistakes made. You do not want the firm/individual that you are using learning lessons at your expense. Even small mistakes can significantly extend the time in which it takes to get licensed.
Does the firm/individual guarantee their service?
While no one can guarantee whether or not a state will grant your organization the required debt collection license, they can guarantee that all license renewals and annual reports are filed on a timely basis. Make sure that if the individual/firm that you are selecting fails to meet a license renewal deadline and you have provided all necessary materials on a timely basis, then they will pay any late fees or penalties that are incurred.
Cornerstone Support has established a reputation as the premier licensing service provider to the collection industry. We understand the particular nuances of licensing all types of collection agencies and are professionally staffed and trained to get your agency licensed faster than anyone else in the industry. We realize that your time is best spent on the moneymaking ventures of your business. In allowing us to take care of your licensing, you can be assured that you are compliant in every state without the stress of managing every detail.
