If you’re a business owner looking to recover the money you owe, finding a powerful, affordable and trustworthy debt collection agency can be a daunting task. With countless collection agencies of varying size and experience out there picking a bad 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, there are 3 powerful techniques to finding the right debt collection agencies that whenever you set to work for you personally can save you a bunch of money as well as recover even more of the money you owe faster… all without exposing you to the typical headaches and frustrations that so frequently go with 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 are definitely the 3 questions that empower you to definitely quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Do 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 rather a transparent ploy of deception.
In fact when you go with these agencies you’re the main one risking everything. No matter whether or not they collect your debt they’ll still charge you an upfront fee for pursuing the debt. So in addition you find yourself without money recovered, you might also need to cover their inability to recover your hard earned money. So you end up losing twice while they created funds in their pockets.
What you truly desire is a guarantee that the money you invest with the agency would really bear a return by means of a collected debt.
Bottom line: never handle a collection agency that won’t guarantee assortment of your debts.
Insider Question #2: “How Will You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie.
In a ruthless effort to get out of pay their accounts a lot more debtors falsely dispute their debt. And what makes this dirty tactic so powerful would be the fact almost without exception debt collection agencies will either refuse to have anything concerning disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute on your own, even if its blatantly fraudulent, is just as financially crippling since it is emotionally infuriating. The legal costs alone can very rapidly dwarf the size of the unpaid account.
Fortunately you can find a couple of collection agencies which are tailored for manage disputes for your benefit at no additional charge. That’s why it’s imperative that before you sign any agreement using a prospective debt collection agency you get them to verify just how they handle disputed debts.
Take home message: only handle debt collection agencies which have systems set up to deal with both genuine and bogus disputes without charging you extra for it. When I say, this is a biggie.
Insider Question #3: “Do You Charge A Commission On Collection From Day 1?”
From the three insider questions to ask, this is by far the most crucial.
Granted, on the surface charging a commission on collection may not sound so bad. However, as you’re about to see charging a commission on collection from day 1 slaughters your odds of getting back all of the money that’s rightfully yours.
If you lack adequate relation to trade and they are prone 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 hard earned money debt collection agencies that charge commission from day one can skin anywhere between 20% to 40% right from the top. Regardless how you see it that’s a huge price to pay to get back the amount of money that’s rightfully yours.
Alternatively, in which you can legally pass on all collection costs to your debtor you might be forgiven for thinking all is sweet… it’s the debtor who gets slapped with the commission while you can keep all money owed for you.
However, what usually ends up happening, stung with 20% to 40% greater than whatever 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 zowgae collection costs, it’s you who ultimately misses out while you fail to recover the majority of your debts.
It’s because of this that you ought to absolutely refuse to cope with any collection agency that charges a commission from day one, particularly when they don’t charge a 1-off fixed fee and even more so should they don’t guarantee collection.