If you’re a business owner looking to recover the money you owe, finding an effective, affordable and trustworthy debt collection agency can be a challenging 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 deceptive collection fees and commissions.
However, you will find 3 powerful tips for finding the best debt collection agencies that if you set to work for you could save you a lot of money as well as recover even more of your financial obligations faster… all without exposing you to the usual headaches and frustrations that so frequently choose 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 would be the 3 questions that empower you to quickly and accurately sort the diamonds from your 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 is NO guarantee of collection but rather a transparent ploy of deception.
In reality when you are with these agencies you’re the main one risking everything. Regardless of whether they collect the debt they’ll still charge you an upfront fee for pursuing your debt. So furthermore you end up with no money recovered, you also have to pay for their lack of ability to recover your cash. So you end up losing twice when they come out with cash in their pockets.
What you truly desire is actually a guarantee the money you invest with the agency will in fact bear a return as a collected debt. Bottom line: never handle a collection agency that won’t guarantee collection of the money you owe.
Insider Question #2: “How Will You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie. In a ruthless effort to get free from pay their accounts more and more debtors falsely dispute their debt. And what makes this dirty tactic so powerful is the fact almost without exception debt collection agencies will either refuse to get anything related to disputed debts OR they’ll charge exorbitant fees.
But seeking to sort out a dispute all on your own, even whether its blatantly fraudulent, is really as financially crippling because it is emotionally infuriating. The legal costs alone can very rapidly dwarf how big the unpaid account.
Fortunately you will find a number of collection agencies which can be 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 these to verify exactly how they handle disputed debts.
Take home message: only deal with debt collection agencies which have systems set up to deal with both genuine and bogus disputes without charging you extra because of it. When I say, this is a biggie.
Insider Question #3: “Do You Charge A Commission On Collection From Day 1?”
Of the three insider things 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 the chances of you getting back each of the money that’s rightfully yours.
Here’s why. In the event you lack adequate terms of trade and therefore are liable to pay collection costs, any cash that’s collected as your representative will likely be significantly whittled by 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 from the top. No matter how you fuovco at it that’s a massive price to pay to have back the money that’s rightfully yours.
Alternatively, where 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 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% a lot more than whatever they originally owed you these debtors form bogus lies to dispute the debt in order to avoid paying it.
Net result: even though it’s your debtor who gets stung with the collection costs, it’s you who ultimately misses out while you fail to recover the majority of your debts. It’s for this reason that you should absolutely refuse to cope with any collection agency that charges a commission from day one, especially if they don’t charge a 1-off fixed fee and even more so if they don’t guarantee collection.