Best Collection Agency For Small Business
If you are a business owner trying to recover your financial obligations, finding a highly effective, affordable and trustworthy debt collection agency can be a daunting task. With countless collection agencies of varying size and experience out there picking the wrong one can cost you hundreds, thousands, and quiet easily thousands of dollars both in lost collections as well as in predatory collection fees and commissions.
However, you can find 3 powerful secrets to finding the best debt collection agencies that if you set to work for you can save you a ton of money as well as recover more of the money you owe faster… all without exposing you to the usual headaches and frustrations that so frequently opt for debt collection.
So revealing are these 3 insider questions that only a fool would pick a collection agency without first asking these three questions. In order of growing importance, here then would be the 3 questions that empower you to definitely quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Can You Guarantee Variety Of My Debts?”
Most agencies will state that no collection means no commission. Don’t be fooled. This can be NO guarantee of collection but alternatively a transparent ploy of deception.
In fact when you go using these agencies you’re the one risking everything. Regardless of whether they collect the debt they’ll still charge an upfront fee for pursuing your debt. So in addition you find yourself without money recovered, there is also to fund their inability to recover your cash. So you find yourself losing twice when they come out with money in their pockets.
What you truly desire is really a guarantee that the money you invest with all the agency will actually bear a return as a collected debt. Bottom line: never cope with a collection agency that won’t guarantee collection of your debts.
Insider Question #2: “How Can You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie. In a ruthless effort to escape pay their accounts more and more debtors falsely dispute their debt. And exactly what makes this dirty tactic so powerful would be the fact almost without exception debt collection agencies will either refuse to get anything concerning disputed debts OR they’ll charge exorbitant fees.
But trying to sort out a dispute on your own, even whether its blatantly fraudulent, is just as financially crippling since it is emotionally infuriating. The legal costs alone can very rapidly dwarf the dimensions of the unpaid account.
Fortunately you can find a handful of collection agencies that are geared to manage disputes on your behalf at no additional charge. That’s why it’s imperative that before you sign any agreement with a prospective debt collection agency you receive them to verify exactly how they handle disputed debts.
Take home message: only cope with debt collection agencies which have systems in position to deal with both genuine and bogus disputes without charging you extra because of it. As I say, it is a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
From the three insider questions to ask, that one is probably the most crucial. Granted, on the surface charging a commission on collection may not sound so bad. However, as you’re planning to see charging a commission on collection from day 1 slaughters your chances of getting back each of the money that’s rightfully yours.
Here’s why. Should you lack adequate terms of trade and are liable to pay collection costs, any money that’s collected as your representative will likely be significantly whittled through the commission on collection. On recovering your money debt collection agencies that charge commission from day one can skin anywhere between 20% to 40% right off the top. No matter how you fuovco at it that’s an enormous price to pay for to get back the cash that’s rightfully yours.
Alternatively, that you can legally pass on all collection costs in your debtor you might be forgiven for thinking all is sweet… it’s the debtor who gets slapped with the commission while you get to keep all money owed for you.
However, what usually winds up happening, stung with 20% to 40% more than the things they originally owed you these debtors form bogus lies to dispute the debt in an effort to avoid paying it.
Net result: even though it’s your debtor who gets stung using the collection costs, it’s you who ultimately misses out as you neglect to recover much of your debts. It’s for this reason that you need to absolutely refuse to cope with any collection agency that charges a commission from day one, particularly if they don’t charge a 1-off fixed fee and even more so when they don’t guarantee collection.