If you’re a businessman 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 the wrong 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 will find 3 powerful secrets to finding the best debt collection agencies that whenever you place 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 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 one to quickly and accurately sort the diamonds from the dust.
Insider Question #1: “Can You Guarantee Assortment 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.
In reality whenever you go with these agencies you’re usually the 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 end up with no money recovered, you might also need to pay for their lack of ability to recover your cash. So you end up losing twice whilst they come forth with funds in their pockets.
What you truly desire is really a guarantee the money you invest with all the agency would really bear a return in the form of a collected debt.
Bottom line: never handle a collection agency that won’t guarantee assortment of your debts.
Insider Question #2: “How Can 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 exactly what makes this dirty tactic so powerful would be the fact almost without exception debt collection agencies will either refuse to have anything to do with disputed debts OR they’ll charge exorbitant fees.
But seeking to sort out a dispute by yourself, even if its blatantly fraudulent, is really as financially crippling since 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 which are tailored for manage disputes for your benefit at no additional charge. That’s why it’s imperative that before you sign any agreement having a prospective debt collection agency you receive those to verify exactly how they handle disputed debts.
Take home message: only deal with debt collection agencies that have systems set up to deal with both genuine and bogus disputes without charging you extra for it. As I say, this is a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
Of the three insider questions you should ask, this 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 chances of getting back all of the money that’s rightfully yours.
If you lack adequate regards to trade and are liable to pay collection costs, any cash that’s collected as your representative is going to be significantly whittled by the commission on collection. On recovering your hard earned money debt collection agencies that charge commission from day one can skin between 20% to 40% right from the top. Regardless how you see it that’s a huge 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 get to keep all money owed to you personally.
However, what usually winds up happening, stung with 20% to 40% greater than what they originally owed you these debtors make up bogus lies to dispute the 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 neglect to recover most of your debts.
It’s for this reason that you ought to absolutely refuse to cope with any collection agency that charges a commission from day one, particularly if they don’t charge a 1-off fixed fee and even more so should they don’t guarantee collection.