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 challenging task. With countless collection agencies of varying size and experience out there picking the wrong one will cost you 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 secrets to finding the right debt collection agencies that when you place to work for you personally can save you a lot of money as well as recover much more of your financial obligations faster… all without exposing one to the typical headaches and frustrations that 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 would be the 3 questions that empower you to quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Do You Guarantee Assortment Of My Debts?”
Most agencies will state that no collection means no commission. Don’t be fooled. This is NO guarantee of collection but instead a transparent ploy of deception.
In reality when you go using these agencies you’re usually the one risking everything. No matter whether they collect the debt they’ll still charge an upfront fee for pursuing the debt. So not only do you end up with no money recovered, there is also to fund their lack of ability to recover your cash. So you end up losing twice while they created cash in their pockets.
What you really want is actually a guarantee that this money you invest with the agency will actually bear a return in the form of a collected debt. Bottom line: never handle a collection agency that won’t guarantee variety 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 escape pay their accounts a lot more debtors falsely dispute their debt. And the thing that makes this dirty tactic so powerful would be the fact almost without exception debt collection agencies will either refuse to possess anything concerning 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 as financially crippling since it is emotionally infuriating. The legal costs alone can very rapidly dwarf how big the unpaid account.
Fortunately there are a handful of collection agencies which are geared to manage disputes on your behalf at no additional charge. That’s why it’s imperative that before you sign any agreement using a prospective debt collection agency you get those to verify precisely how they handle disputed debts.
Take home message: only cope with debt collection agencies which have systems in place to cope 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 one is by far 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 the chances of you getting back each of the money that’s rightfully yours.
Here’s why. Should you lack adequate relation to trade and they are prone to pay collection costs, any cash that’s collected for your benefit is going to be significantly whittled from the commission on collection. On recovering your cash debt collection agencies that charge commission from day one can skin anywhere between 20% to 40% right off of the top. No matter how you fuovco at it that’s a massive price to cover to have back the cash 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 using the commission while you can keep all money owed for you.
However, what usually eventually ends up happening, stung with 20% to 40% greater than the things 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 the collection costs, it’s you who ultimately misses out when you neglect to recover most of your debts. It’s because of this that you need to absolutely refuse to deal with any collection agency that charges a commission from day one, especially if they don’t charge a one-off fixed fee and even much more when they don’t guarantee collection.