If you’re a businessman trying to recover your financial obligations, 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 will set you back hundreds, thousands, and quiet easily hundreds and hundreds of dollars both in lost collections as well as in predatory collection fees and commissions.
However, there are 3 powerful techniques to finding the right debt collection agencies that if you put to work to suit your needs could save you a bunch of money as well as recover more of your financial obligations faster… all without exposing you to the usual headaches and frustrations that so often opt for debt collection.
So revealing are these 3 insider questions that just 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 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 alternatively a transparent ploy of deception.
In reality when you are by using these agencies you’re usually the one risking everything. Irrespective of whether they collect the debt they’ll still charge you an upfront fee for pursuing the debt. So not only do you find yourself without money recovered, there is also to fund their inability to recover your money. So you find yourself losing twice whilst they come out with money in their pockets.
What you really want is actually a guarantee the money you invest with all the agency will in fact bear a return in the form of a collected debt.
Bottom line: never handle a collection agency that won’t guarantee collection 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 out of pay their accounts a lot more debtors falsely dispute their debt. And exactly what makes this dirty tactic so powerful is the fact almost without exception debt collection agencies will either refuse to possess anything concerning disputed debts OR they’ll charge exorbitant fees.
But seeking to sort out a dispute on your own, even if its blatantly fraudulent, is just as financially crippling because it is emotionally infuriating. The legal costs alone can very rapidly dwarf how big the unpaid account.
Fortunately you will find a couple of collection agencies which are geared to manage disputes as your representative at no additional charge. That’s why it’s imperative that before you sign any agreement having a prospective debt collection agency you get them to verify precisely how they handle disputed debts.
Take home message: only deal with debt collection agencies who have systems in place to deal with both genuine and bogus disputes without charging you extra for this. When I say, this is a biggie.
Insider Question #3: “Can You Charge A Commission On Collection From Day 1?”
Of the three insider things to ask, that 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 going to see charging a commission on collection from day 1 slaughters your odds of getting back each 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 for your benefit will likely be significantly whittled from 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 off of the top. Regardless of how you look at it that’s a massive price to pay for to obtain back the money that’s rightfully yours.
Alternatively, in which 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 with the commission while you get to keep all money owed to you personally.
However, what usually ends up happening, stung with 20% to 40% greater than what they originally owed you these debtors make up bogus lies to dispute your debt in an effort 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 while you forget to recover most of your debts.
It’s because of this 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 one-off fixed fee and even much more when they don’t guarantee collection.