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.
Chicago limo Skokie ..It appears the mini-blimp indoor theme and concept is making... Read More
We have all seen the mobile washing units cruising our... Read More
My 16 year-old daughter said, "Gee Dad! You look just... Read More
New Franchisors and Entrepreneurs need to watch out as they... Read More
How often have you thumbed through a business opportunity magazine,... Read More
It behooves every professional mobile auto detailer to stay up... Read More
At one point or another, almost every business runs short... Read More
If you discovered the bottom line in your business depended... Read More
Many experienced auto detailing professionals who have started out using... Read More
Business consulting opportunities might be just what your are looking... Read More
What makes a business relationship?What really makes a business relationship?... Read More
Do you sometimes find yourself just going "through the motions"... Read More
"So what?" is a lovely question.It can lead to a... Read More
(Although this article is geared towards small business owners, the... Read More
-- The One Pager Shortcut Series --People do business with... Read More
If you have a busy private practice, chances are you... Read More
Q. I am a former pastor who left the ministry... Read More
"Inch by inch, row by row...that's the way my garden... Read More
A top executive called up me late in the night.... Read More
If you run a pressure washing business it is a... Read More
Having their own business is something many millions of people... Read More
For really tough boat hull cleaning you will need to... Read More
Does your small business have a banking and credit card... Read More
I agree that knowledge should be free, but the next... Read More
Macon, GA goes after garage-gas station conversion detail/hand car washes... Read More
limo O'Hare Bonfield ..Becoming a contractor or sub-contractor for the U.S. government can... Read More
A suggestion box is a really good idea for your... Read More
There are countless ways to save your business money. Unfortunately,... Read More
You make the decision to go into business and for... Read More
Under the Securities Act of 1933, any offer to sell... Read More
When is it a good thing to say no to... Read More
It's a commonly quoted statistic: 80% of all small businesses... Read More
In a perfect world, starting a small business would be... Read More
Why do you need an account plan?When you first decide... Read More
Articles abound advising the business community how to properly screen... Read More
Part of the power plan is making sure you have... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
COLLABORATIVE NEGOTIATING:Collaborative negotiating is a win-win strategy that can focus... Read More
Congratulations, you are starting a small business! You are taking... Read More
Q: A friend told me that as a woman of... Read More
Are you tired yet of all the books out there... Read More
No matter your age or station in life, we all... Read More
What is a Family Business? A family business is basically... Read More
Should you buy a business opportunity or Franchise if you... Read More
-- The One Pager Shortcut Series --People do business with... Read More
You're pretty proud of yourself! After all, only four months... Read More
In a world full of complications sometimes we overlook the... Read More
If you have ever had your antique shop or mall... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
Small Business |