If you are a business, then you have most likely dealt with unpaid customer bills. It never helps delivering your product or service and not getting paid. More than likely your employees are not trained to work with past-due bills, and handing them over to a part-time debt collectors can be difficult.
The job of a debt collection agency has been serving businesses for a very long time, getting back money from their clients that they could not collect themself. Serveing both large and small businesses and protecting their legal rights of getting paid. Every state in the US has its own laws when it comes to debt collection. Not paying one’s debts may result in penalties and even lawsuits initiated by your debtor on you. America is known for lawsuits, sometimes in good ways and sometimes in bad.
When it comes to selecting a collection agency it is crucial to not hire an agency just because it is closer to you or offer’s you the cheapest rates. To begin with, where a collection agency does not matter. Next, the collection agency charging very low fees will most likely have inexperienced or underperforming debt collectors working for them. A good and hard working debt collector will not charge a lower fee. As an example, If you are owed an amount of $20,000 to a collection agency charging 40% contingency fees and they recover $10,000, you will then receive $6,000 and the rest would go to the agency. If a collection agency is charging much less, let’s say 20% then there contingency fees may recover a lot less. When it comes to the debt collection industry, you certainly get what you pay for. Working alone and inexperienced debt collectors could damage your reputation, so be careful and choose wisely.
Small business debt collection agencies often run several different checks on all your debtors, including Skip tracing, Bankruptcy check, and Litigious customer checks in order to help them better improve their recovery rate.
If collection agencies did not exist, billions of dollars of business invoices would never be paid, and that would lead to massive losses and layoffs. The role that collection agencies play in the business ecosystem is extremely crucial. By law debt collectors must work amicably and diplomatically. It is always necessary and important to hire a collection agency with the license to collect in all 50 states. If your debtor moved to a different state, the same collection agency could continue work for you, with no problem.
With over 5000 collection agencies around the USA, it is so important to be sure to select an agency that is FDCPA and HIPAA compliant. Make sure to also check their low complaint rate and higher BBB reviews. It may sound funny at first but if you are trying to find a good collection agency, talk to your doctor or dentist, it’s likely they are already using one and might be able to recommend you to them.
Collecting debts is important for any business, so that you get paid what you deserve. Here are some tips and things to look for in good debt collectors.
Author Bio:- Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated collection agency merchant account in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.