If you’re a business owner looking to recover your financial obligations, 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 thousands of dollars both in lost collections as well as in predatory collection fees and commissions.
However, you can find 3 powerful secrets to locating the best debt collection agencies that when you put to work for you will save you a bunch of money as well as recover much more of your financial obligations faster… all without exposing one to the typical headaches and frustrations that so often choose debt collection.
So revealing are these 3 insider questions that merely 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 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 rather a transparent ploy of deception.
The truth is when you are by using 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 in addition you end up with no money recovered, you also have to pay for their inability to recover your money. So you find yourself losing twice when they created cash in their pockets.
What you want is actually a guarantee that the money you invest with the agency will actually bear a return by means of a collected debt. Bottom line: never handle a collection agency that won’t guarantee variety of your financial obligations.
Insider Question #2: “How Do You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie. In a ruthless effort to escape pay their accounts more and 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 get anything to do with disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute on your own, even whether its blatantly fraudulent, is as financially crippling as 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 that 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 obtain them to verify precisely how they handle disputed debts.
Take home message: only deal with debt collection agencies that have systems set up to cope with both genuine and bogus disputes without charging you extra for this. As I say, this can be a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
From the three insider things to ask, this is quite possibly 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 chances of getting back all the money that’s rightfully yours.
Here’s why. Should you lack adequate relation to trade and therefore are prone to pay collection costs, money that’s collected for your benefit is going to be significantly whittled through the commission on collection. On recovering your cash debt collection agencies that charge commission from day one can skin between 20% to 40% right off the top. No matter how you fuovco at it that’s an enormous price to cover to obtain back the amount of money 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 to you personally.
However, what usually winds up happening, stung with 20% to 40% more than whatever they originally owed you these debtors make up bogus lies to dispute your debt in order to avoid paying it.
Net result: even though it’s your debtor who gets stung with all the collection costs, it’s you who ultimately misses out while you neglect to recover most of your debts. It’s because of this 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 when they don’t guarantee collection.