If you’re a business owner looking to recover your debts, finding an 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 will set you back hundreds, thousands, and quiet easily tens of thousands of dollars both in lost collections as well as in predatory collection fees and commissions.
However, there are 3 powerful tips for finding the right debt collection agencies that if you set to work to suit your needs will save you a ton of money as well as recover more of your debts faster… all without exposing one to the typical headaches and frustrations that 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 increasing importance, here then are the 3 questions that empower you to quickly and accurately sort the diamonds from 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 is NO guarantee of collection but alternatively a transparent ploy of deception.
In fact when you go by using these agencies you’re usually the one risking everything. Regardless of whether they collect your debt they’ll still charge you an upfront fee for pursuing your debt. So not only do you find yourself without money recovered, you might also need to fund their lack of ability to recover your money. So you find yourself losing twice while they created cash in their pockets.
What you truly desire is really a guarantee that this money you invest using the agency will in fact bear a return in the form of a collected debt. Bottom line: never cope with a collection agency that won’t guarantee collection of your financial obligations.
Insider Question #2: “How Can You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie. In a ruthless effort to get out of pay their accounts increasingly more debtors falsely dispute their debt. And the thing that makes this dirty tactic so powerful is the fact that almost without exception debt collection agencies will either refuse to have anything related to disputed debts OR they’ll charge exorbitant fees.
But seeking to sort out a dispute by yourself, even whether its blatantly fraudulent, is just as financially crippling because 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 which are geared to manage disputes for your benefit at no additional charge. That’s why it’s imperative that before you sign any agreement having a prospective debt collection agency you receive them to verify just how they handle disputed debts.
Take home message: only deal with debt collection agencies who have systems set up to cope with both genuine and bogus disputes without charging you extra for it. Because I say, it is a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
From the three insider questions you should ask, that one is quite possibly the most crucial. Granted, on the surface charging a commission on collection may not sound so bad. However, as you’re going to see charging a commission on collection from day 1 slaughters your odds of getting back all the money that’s rightfully yours.
Here’s why. Should you lack adequate relation to trade and therefore are prone to pay collection costs, any cash that’s collected as your representative will be significantly whittled through the commission on collection. On recovering your money debt collection agencies that charge commission from day one can skin between 20% to 40% right off the top. Regardless how you fuovco at it that’s a huge price to cover to get back the money 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 all the commission while you can keep all money owed to you personally.
However, what usually eventually ends up happening, stung with 20% to 40% a lot more than the things they originally owed you these debtors make up bogus lies to dispute the debt in an effort to avoid paying it.
Net result: even though it’s your debtor who gets stung with all the collection costs, it’s you who ultimately misses out when you forget to recover the majority of your debts. It’s for that reason that you ought 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 should they don’t guarantee collection.