If you’re a business owner trying to recover the money you owe, 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 cost you hundreds, thousands, and quiet easily hundreds and hundreds of dollars both in lost collections as well as in predatory collection fees and commissions.
However, there are 3 powerful techniques to finding the best debt collection agencies that whenever you set to work for you could save you a lot of money as well as recover more of the money you owe faster… all without exposing you to the typical headaches and frustrations that so frequently choose debt collection.
So revealing are these 3 insider questions that just 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 quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Can You Guarantee Collection Of My Debts?”
Most agencies will state that no collection means no commission. Don’t be fooled. This really is NO guarantee of collection but alternatively a transparent ploy of deception.
In reality whenever you go using these agencies you’re the one risking everything. Irrespective of whether they collect your debt they’ll still charge an upfront fee for pursuing your debt. So furthermore you find yourself without any money recovered, there is also to pay for their inability to recover your cash. So you end up losing twice whilst they come out with cash in their pockets.
What you really want is actually a guarantee that the money you invest with the agency will in fact bear a return in the form of a collected debt. Bottom line: never handle 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 exactly what makes this dirty tactic so powerful is the fact almost without exception debt collection agencies will either refuse to possess anything concerning disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute all on your own, even if its blatantly fraudulent, is really as financially crippling because it is emotionally infuriating. The legal costs alone can very rapidly dwarf the size of the unpaid account.
Fortunately you will find a couple of collection agencies that are tailored for manage disputes as your representative at no additional charge. That’s why it’s imperative that before you sign any agreement with a prospective debt collection agency you obtain them to verify just how they handle disputed debts.
Take home message: only handle debt collection agencies who have systems in place to deal with both genuine and bogus disputes without charging you extra for this. When I say, it is a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
In the three insider questions you should ask, this 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 odds of getting back all the money that’s rightfully yours.
Here’s why. Should you lack adequate relation to trade and are liable to pay collection costs, money that’s collected for your benefit will 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 between 20% to 40% right off of the top. Regardless of how you fuovco at it that’s a massive price to pay for to obtain back the amount of money that’s rightfully yours.
Alternatively, where you can legally pass on all collection costs for your debtor you might be forgiven for thinking all is sweet… it’s the debtor who gets slapped with all the commission while you get to keep all money owed to you personally.
However, what usually winds up happening, stung with 20% to 40% more than whatever they originally owed you these debtors make up bogus lies to dispute your debt in an attempt 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 while you forget to recover the majority of your debts. It’s because of this that you should absolutely refuse to deal with any collection agency that charges a commission from day one, particularly if they don’t charge a one-off fixed fee and even much more should they don’t guarantee collection.