If you’re a businessman looking to recover your debts, finding an effective, 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 cost you hundreds, thousands, and quiet easily hundreds and hundreds of dollars both in lost collections as well as in predatory collection fees and commissions.
However, you will find 3 powerful secrets to finding the right debt collection agencies that when you place to work for you personally will save you a ton of money as well as recover more of your debts faster… all without exposing you to the standard headaches and frustrations that so frequently choose 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 increasing importance, here then would be the 3 questions that empower you to definitely quickly and accurately sort the diamonds through the dust.
Insider Question #1: “Can You Guarantee Collection 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 rather a transparent ploy of deception.
In reality when you are using these agencies you’re the main one risking everything. Regardless of whether or not they collect the debt they’ll still charge you an upfront fee for pursuing your debt. So in addition you wind up without money recovered, you also have to pay for their inability to recover your money. So you end up losing twice while they come forth with funds in their pockets.
What you truly desire is a guarantee the money you invest with the agency would really bear a return in the form of a collected debt.
Bottom line: never handle a collection agency that won’t guarantee variety of your debts.
Insider Question #2: “How Will You Handle Disputed Debts?”
Make no mistake.. this one’s a biggie.
In a ruthless effort to escape pay their accounts increasingly 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 possess anything concerning disputed debts OR they’ll charge exorbitant fees.
But attempting to sort out a dispute on your own, even whether its blatantly fraudulent, is as financially crippling since it is emotionally infuriating. The legal costs alone can very rapidly dwarf the dimensions of the unpaid account.
Fortunately there are a handful of collection agencies which are geared to 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 those to verify precisely how they handle disputed debts.
Take home message: only handle debt collection agencies that have systems in place to handle both genuine and bogus disputes without charging you extra because of it. As I say, it is a biggie.
Insider Question #3: “Would You Charge A Commission On Collection From Day 1?”
Of the three insider things to ask, this is probably 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 the chances of you getting back all of the money that’s rightfully yours.
Should you lack adequate terms of trade and therefore are prone to pay collection costs, any money that’s collected for your benefit will 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 off the top. No matter how you see it that’s a massive price to pay to have back the cash that’s rightfully yours.
Alternatively, in which you can legally pass on all collection costs to your debtor you might be forgiven for thinking all is sweet… it’s the debtor who gets slapped using the commission while you get to keep all money owed to you.
However, what usually ends up happening, stung with 20% to 40% greater than the things they originally owed you these debtors make up bogus lies to dispute the 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 as you forget to recover much of your debts.
It’s for this reason that you need to absolutely refuse to deal with any collection agency that charges a commission from day one, especially if they don’t charge a one-off fixed fee and even much more when they don’t guarantee collection.