If you’re a businessman 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 can cost you hundreds, thousands, and quiet easily hundreds and hundreds of dollars both in lost collections as well as in deceptive collection fees and commissions.
However, you can find 3 powerful tips for finding the right debt collection agencies that whenever you place 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 usual headaches and frustrations that frequently choose 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 definitely the 3 questions that empower one to quickly and accurately sort the diamonds from 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 alternatively a transparent ploy of deception.
In fact whenever you go using these agencies you’re usually the one risking everything. Regardless of whether or not they collect the debt they’ll still charge you an upfront fee for pursuing the debt. So not only do you find yourself without any money recovered, you might also need to pay for their inability to recover your money. So you end up losing twice while they come forth with cash in their pockets.
What you really want is a guarantee the money you invest with all the agency will actually bear a return by means of a collected debt. Bottom line: never deal with a collection agency that won’t guarantee variety of the money you owe.
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 exactly what makes this dirty tactic so powerful is the fact that 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 if its blatantly fraudulent, is really as financially crippling because it is emotionally infuriating. The legal costs alone can very rapidly dwarf the size of the unpaid account.
Fortunately there are a handful of collection agencies that are tailored for 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 obtain those to verify just how they handle disputed debts.
Take home message: only handle debt collection agencies who have systems in position to handle both genuine and bogus disputes without charging you extra because of it. Because I say, this is a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
In the three insider things to ask, this one is probably 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 all the money that’s rightfully yours.
Here’s why. In the event you lack adequate regards to trade and are prone to pay collection costs, any cash that’s collected as your representative will likely be significantly whittled through 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 off of the top. No matter how you fuovco at it that’s an enormous price to pay for to have 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 get to keep all money owed to you personally.
However, what usually winds up happening, stung with 20% to 40% a lot more than the things 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 all the collection costs, it’s you who ultimately misses out as you fail to recover the majority of your debts. It’s for that reason that you should absolutely refuse to deal 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 should they don’t guarantee collection.