If you’re a businessman trying to recover your debts, 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 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, there are 3 powerful techniques to finding the best debt collection agencies that whenever you put to work for you could save you a lot of money as well as recover much more of your financial obligations faster… all without exposing one to the usual headaches and frustrations that so frequently opt for 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 would be the 3 questions that empower you to quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Would You Guarantee Variety Of My Debts?”
Most agencies will state that no collection means no commission. Don’t be fooled. This can be NO guarantee of collection but instead a transparent ploy of deception.
In reality when you go using these agencies you’re the main one risking everything. No matter whether they collect your debt they’ll still charge you an upfront fee for pursuing your debt. So in addition you wind up with no money recovered, you might also need to cover their lack of ability to recover your hard earned money. So you end up losing twice while they come forth with cash in their pockets.
What you want is a guarantee the money you invest using the agency will in fact bear a return as a collected debt. Bottom line: never deal with a collection agency that won’t guarantee assortment 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 is the fact that almost without exception debt collection agencies will either refuse to have anything concerning disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute by yourself, even whether its blatantly fraudulent, is really as financially crippling as it is emotionally infuriating. The legal costs alone can very rapidly dwarf the dimensions of the unpaid account.
Fortunately you can find a handful of collection agencies which can be geared to manage disputes as your representative at no additional charge. That’s why it’s imperative that before you sign any agreement using a prospective debt collection agency you receive them to verify exactly 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. Because I say, it is a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
Of the three insider questions you should 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 planning 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 regards to trade and therefore are liable to pay collection costs, any money that’s collected as your representative will likely be significantly whittled from the commission on collection. On recovering your cash debt collection agencies that charge commission from day one can skin between 20% to 40% right from the top. Regardless of how you fuovco at it that’s an enormous price to pay to have back the amount of money that’s rightfully yours.
Alternatively, where 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 for you.
However, what usually winds up happening, stung with 20% to 40% a lot more than what they originally owed you these debtors form bogus lies to dispute the debt in an effort 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 when you fail to recover much of your debts. It’s because of this that you need to 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 when they don’t guarantee collection.