If you’re a businessman trying to recover your debts, 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 can 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 tips for locating the best debt collection agencies that if you set to work for you will save you a bunch of money as well as recover more of your financial obligations faster… all without exposing you to definitely the usual 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 are the 3 questions that empower you to quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Would 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 instead a transparent ploy of deception.
In fact when you go using these agencies you’re the one risking everything. Regardless of whether or not they collect your debt they’ll still charge you an upfront fee for pursuing the debt. So in addition you end up without any money recovered, there is also to pay for their lack of ability to recover your money. So you wind up losing twice while they created funds in their pockets.
What you truly desire is a guarantee that this money you invest using the agency will in fact bear a return in the form of a collected debt. Bottom line: never cope with a collection agency that won’t guarantee assortment 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 free from pay their accounts more and more debtors falsely dispute their debt. And the thing that makes this dirty tactic so powerful is the fact that almost without exception debt collection agencies will either refuse to have anything related to disputed debts OR they’ll charge exorbitant fees.
But trying to sort out a dispute on your own, even if its blatantly fraudulent, is just as financially crippling since it is emotionally infuriating. The legal costs alone can very rapidly dwarf the dimensions of the unpaid account.
Fortunately there are a number of collection agencies which can be 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 those to verify just how they handle disputed debts.
Take home message: only cope with debt collection agencies who have systems set up to handle both genuine and bogus disputes without charging you extra for it. Because I say, this can be a biggie.
Insider Question #3: “Do You Charge A Commission On Collection From Day 1?”
Of the three insider questions 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 all the money that’s rightfully yours.
Here’s why. Should you lack adequate regards to trade and therefore are liable to pay collection costs, any cash that’s collected for your benefit will likely be significantly whittled from the commission on collection. On recovering your money debt collection agencies that charge commission from day one can skin anywhere between 20% to 40% right off the top. Regardless how you fuovco at it that’s a massive price to cover to obtain back the cash 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 ends up happening, stung with 20% to 40% greater than whatever they originally owed you these debtors make up 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 much of your debts. It’s for this reason 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 if they don’t guarantee collection.