Frankly, given the legal and regulatory requirements involved in attempting to collect a debt, it makes as much sense to do it yourself as it does to try to remove your own appendix. A collection agency is, on the whole, much cheaper than a doctors - and lawyers. Do yourself a favor and let a professional collection agency handle this complex matter for you.
It is an unfortunate fact that the collections industry is not regulated much by the government. Absolutely anybody can set themselves up with an "office" and call themselves a collection agency. You don't have to be certified or accredited by anybody.
You don't need any kind of special degrees or anything like that to start a collection agency. So, while there are plenty of reputable, ethical collection agencies out there, are also plenty of con artists. It's a case of buyer very much beware.
Beyond making sure the collection agency is credible, you'll need to make sure they are right for your business. Each collection agency may have different specialties and, even if they don't, they might not have the specialized knowledge required to collect in your industry. A collection agency working in medical collections must be familiar with medical terminology and insurance requirements. Make sure the collection agency has the skills and knowledge needed to successfully collect on your particular type of account.
You will also have to consider the fact that the collection agency will have to be paid for their services. A collection agency usually charges you a percentage of the money they collect on your behalf; currently the industry standards range from 25% to50%, depending on the dollar amount of the account, the age of the account, how much overall business the collection agency gets (or expects to get) from you in the long run, and other factors. Some collection agencies charge a low flat fee per collection which may be a more affordable solution for some businesses.
What you really want to know about this collection agency, however, is what they quote as their average recovery rate. The collection agency cannot guarantee that they are going to collect the money you are owed, because their ability to do so will dependent on many unforeseen factors. But the collection agency can give you a percentage of approximately how much their collection agency collects of the accounts that are placed with them, in general and in your particular industry. That is going to be much more important than their commission rate.
Finally, you'll want to check your potential collection agency out with both the Better Business Bureau and your state's Attorney General's Office. Specifically, it is important to discover if there have been any complaints registered against them by disgruntled former clients, or if they have had to defend themselves against alleged violations of the Fair Debt Collection Act. Remember that this collection agency will be representing you and your business. You don't want the sort of collectors who threaten to break people's knee caps, or call their neighbors to harass them. Make sure you're dealing with real professionals.
With the right kind of collection agency, you will be able to develop a real working relationship with the account executive who is servicing your account. These guys can be enormously helpful, particularly when it comes to dealing with bad-tempered debtors. There are going to be distinct legal limits to the kinds of things you can say and do, no matter now nasty people who owe your money become, and consulting your collection agency rep is a lot cheaper than talking to your lawyer. As long as all parties involved recognize the fact that yours is a partnership, in which both of you treat each other professionally, you will be well on your way to a good, long-term working relationship.
collection agency outsourcing offers you free information on collection agencies and debt collections issues.
executive chauffeured services Bradford .. Madison to Airport carWhile I was hard at work last week, an everyday... Read More
The resume writing service serves an important role in the... Read More
The following tips have come from a wide variety of... Read More
Costs of over regulation and over disclosure end up hurting... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
My clients and many of my readers are small and... Read More
We're birds of a feather, public relations and small business.... Read More
You can make your trade show experience much easier by... Read More
Are you responsible for your results?What comes to mind when... Read More
$37.4 million funded from venture capital today. $86.4 million funded... Read More
I'll be the first to admit that I went a... Read More
Many auto detailers fall short in their sales presentations. I... Read More
What is a Family Business? A family business is basically... Read More
A career coach could be simply defined your job seeking... Read More
"Order Now!" "Your Business Will Fail If You Don't Have... Read More
As a practitioner and student of Small Business Marketing, I... Read More
How many hours do you work a week? When was... Read More
Do you operate your business as a series of projects,... Read More
If you've been thinking about starting a business, but are... Read More
Have you ever wondered what the difference is between a... Read More
Car Wash Crime in the Hood. Apparently not everyone is... Read More
If you're like the rest of us, you've spent a... Read More
You may be in Mail Order, Direct Mail, or you... Read More
Most of us remember going to at least one garage... Read More
The choice to incorporate a small business in Florida has... Read More
O'Hare Chicago prom limo ..You've come up with the best idea since sliced bread,... Read More
Every business plan book tells you how the Executive Summary... Read More
10 Best Practices to consider as your SBIR negotiations approach... Read More
As a practise gets larger & larger the associated problems... Read More
You bet a name is important. Many small business owners... Read More
Experts urge small business owners to "brand" their business ?... Read More
To maximum potential profits and dollars in a mobile washing... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
Home based travel businesses are no longer the wave of... Read More
Starting and managing a small business is no fun chore,... Read More
What are the best methods for keeping a good business... Read More
"I don't know the key to success, but the key... Read More
Expanding your business requires you to take a good hard... Read More
Sacred cows take a long time to die. We get... Read More
If you're anything like me then you dislike with a... Read More
Part of the power plan is making sure you have... Read More
In this paper, I will:1. provide a framework for creating... Read More
Perhaps you are building a new home office or you... Read More
If you run a pressure washing company in a rural... Read More
Is your business making money? Would you know?Figuring out whether... Read More
Managing cash flow is every small business owner's most important... Read More
CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More
It's the dream of every person who starts a business... Read More
As long as you eat and breathe you will stay... Read More
A Mattress Cleaning Business might be just for you if... Read More
Small Business |