If you’re a businessman trying to recover your financial obligations, 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 will set you back 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 finding the best debt collection agencies that if you set to work for you personally can save you a lot of money as well as recover even more of the money you owe faster… all without exposing you to the typical headaches and frustrations that frequently 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 growing importance, here then would be the 3 questions that empower you to definitely quickly and accurately sort the diamonds from 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 is NO guarantee of collection but rather a transparent ploy of deception.
In reality whenever you go by using these agencies you’re the one risking everything. Irrespective of whether they collect the debt they’ll still charge an upfront fee for pursuing your debt. So not only do you find yourself with no money recovered, you might also need to cover their inability to recover your money. So you end up losing twice whilst they come forth with funds in their pockets.
What you truly desire is actually a guarantee the money you invest using the agency will actually bear a return in the form of a collected debt. Bottom line: never handle a collection agency that won’t guarantee assortment 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 get out of pay their accounts increasingly more debtors falsely dispute their debt. And the thing that makes this dirty tactic so powerful is the fact almost without exception debt collection agencies will either refuse to possess anything to do with disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute by yourself, 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 can find a number 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 obtain them to verify exactly how they handle disputed debts.
Take home message: only cope with debt collection agencies who have systems set up to deal with both genuine and bogus disputes without charging you extra because of it. Because I say, this is a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
From the three insider questions you should ask, this one 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 your chances of getting back each of the money that’s rightfully yours.
Here’s why. In the event you lack adequate relation to trade and therefore are prone to pay collection costs, money that’s collected on your behalf 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 anywhere between 20% to 40% right off the top. No matter how you fuovco at it that’s a massive price to cover to get back the money that’s rightfully yours.
Alternatively, in which 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 can keep all money owed to you personally.
However, what usually eventually ends up happening, stung with 20% to 40% greater than the things they originally owed you these debtors constitute bogus lies to dispute the debt in order to avoid paying it.
Net result: even though it’s your debtor who gets stung using the collection costs, it’s you who ultimately misses out while you neglect to recover much of your debts. It’s for this reason that you should absolutely refuse to handle any collection agency that charges a commission from day one, particularly when they don’t charge a one-off fixed fee and even more so when they don’t guarantee collection.