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 daunting task. With countless collection agencies of varying size and experience out there picking a bad one can cost you hundreds, thousands, and quiet easily tens of thousands of dollars both in lost collections as well as in predatory collection fees and commissions.
However, you can find 3 powerful techniques to finding the best debt collection agencies that when you put to work for you could save you a ton of money as well as recover much more of your financial obligations faster… all without exposing you to definitely the standard headaches and frustrations that so often go with 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 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: “Do You Guarantee Variety 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 are by using these agencies you’re the one risking everything. Irrespective of whether they collect your debt they’ll still charge an upfront fee for pursuing your debt. So not only do you find yourself without any money recovered, you also have to fund their inability to recover your hard earned money. So you wind up losing twice when they created cash in their pockets.
What you truly desire is a guarantee that the money you invest with the agency would really bear a return in the form of 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 free from pay their accounts a lot 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 have anything related to disputed debts OR they’ll charge exorbitant fees.
But trying to sort out a dispute by yourself, even if 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 there are a couple of collection agencies which can be geared to manage disputes on your behalf at no additional charge. That’s why it’s imperative that before you sign any agreement having a prospective debt collection agency you get them to verify just how they handle disputed debts.
Take home message: only handle debt collection agencies which have systems in place to handle both genuine and bogus disputes without charging you extra for it. As I say, this can be a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
In the three insider questions to ask, this one is quite possibly the most crucial.
Granted, on the surface charging a commission on collection may not sound so bad. However, as you’re going 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.
If you lack adequate relation to trade and therefore are liable to pay collection costs, any money that’s collected on your behalf is going to be significantly whittled by 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 from the top. No matter how you perceive it that’s a massive price to pay for to have back the amount of money that’s rightfully yours.
Alternatively, that you can legally pass on all collection costs in 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.
However, what usually ends up happening, stung with 20% to 40% greater than what they originally owed you these debtors constitute 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 zowgae collection costs, it’s you who ultimately misses out as you fail to recover the majority of your debts.
It’s because of this that you need to absolutely refuse to cope with any collection agency that charges a commission from day one, particularly when they don’t charge a 1-off fixed fee and even much more when they don’t guarantee collection.