If you’re a businessman looking to recover the money you owe, finding a highly effective, 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 will set you back hundreds, thousands, and quiet easily hundreds and hundreds of dollars both in lost collections as well as in predatory collection fees and commissions.
However, you will find 3 powerful secrets to finding the right debt collection agencies that if you set to work for you could save you a bunch of money as well as recover even more of the money you owe faster… all without exposing you to definitely the standard 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 increasing importance, here then would be the 3 questions that empower one to quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Can You Guarantee Variety 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.
The truth is 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 an upfront fee for pursuing your debt. So furthermore you find yourself without money recovered, you also have to fund their inability to recover your money. So you find yourself losing twice while they created funds in their pockets.
What you want is actually a guarantee that the money you invest using the agency will in fact bear a return as a collected debt.
Bottom line: never cope with a collection agency that won’t guarantee collection of your financial obligations.
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 more and 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 get 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 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 geared to 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 get these to verify just how they handle disputed debts.
Take home message: only handle debt collection agencies which have systems set up to cope with both genuine and bogus disputes without charging you extra because of it. Because I say, it is a biggie.
Insider Question #3: “Do You Charge A Commission On Collection From Day 1?”
From the three insider things to 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.
In the event you lack adequate terms of trade and are prone to pay collection costs, any cash that’s collected as your representative will be significantly whittled from 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 off of the top. Regardless of how you see it that’s a massive price to pay to obtain back the amount of money that’s rightfully yours.
Alternatively, in which 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 the commission while you get to keep all money owed for you.
However, what usually eventually ends up happening, stung with 20% to 40% a lot more than whatever they originally owed you these debtors form bogus lies to dispute your debt in order 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 neglect to recover the majority of your debts.
It’s for this reason that you ought 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 if they don’t guarantee collection.