If you're a business owner looking to settle your bad debts finding an effective, economical and honest debt collector can be a daunting task. As in any industry, collection agencies vary in both size and skill. Consequently, if you pick the wrong one chances are you'll lose a truck load of money both in un-recovered accounts as well as in outrageous collection agency fees.
However, there are 3 insider debt recovery secrets to separating diamond debt collectors from the dirt. Privy to these three secrets you'll possess the power recover more of your debts faster as well as save thousands I the process... all without exposing yourself to the usual nightmares that so often go with debt collection.
So revealing are these three secrets that it'd border on negligence to pick a prospective debt collection agency without first asking these three questions...
Insider Question #1: "Do You Guarantee Collection Of My Accounts?"
If they tell you "No Collection means No Commission" - watch out! This is just marketing spin designed to deceive you.
Because what few people realize is that the only person who stands to lose with such agencies is you! These agencies will charge you an up front fee for pursuing a debt, regardless of whether or not they actually recover that debt. In this way not only do you wind-up with no debt collected, you also have to pay for their incompetence to recover that debt!
Net Result: They always come out with money in the bank while you get stung twice!
So while such agencies are rare, what you really want is a debt collection agency that guarantees the money you invest with them will actually bear a return in the form of a recovered account.
Bottom Line: ONLY ever deal with a collection agency that guarantees collection of your debts!
Insider Question #2: "How Do You Handle Disputed Debts?"
Make no mistake... this one's HUGE!
In a desperate effort to get out of paying their accounts, more and more debtors falsely dispute their debts. And what makes this dirty tactic so powerful is the fact that almost without exception debt collection agencies will either flat-out refuse to have anything to do with disputed debts OR they'll charge you outrageous fees to do so.
As a result, you're left to your own devices to deal with your disputed debts.
However, as the legal fees can very rapidly trivialize the size of the unpaid debt, trying to recover a disputed debt alone can be as financially crippling as it is emotionally -- even if the debt is clearly bogus.
However, what fee people know is there are a handful of collection agencies that are geared to manage disputes on your behalf without charging you extra. It's for this reason that before you sign anything with a prospective debt collector you must get them to verify exactly how they handle disputed debts.
Bottom Line: Only deal with debt collection agencies that have systems in place to deal with both genuine and bogus disputes without charging you extra for it. As I said, this one's a biggie.
Insider Question #3: "Can You Recover My Debts Without Charging Me Or My Debtors A Cent Of Commission On Collection?"
Of the three insider questions to ask, this one is by far the most crucial.
Granted, at first glance charging a commission on collection may appear reasonable. However, the truth is charging a commission on collection from day 1 slaughters your chances of getting back all the money that's rightfully yours.
How come?
Should you lack the right to legally pass on collection costs to your debtors, any money the collection agency recovers on your behalf will be dramatically whittled by their commission fees. From day one, such agencies will pilfer anywhere between 20% to 40% of money that's rightfully yours. No matter how you slice it that's a huge portion of your pie to needlessly give away.
On the other hand, if you possess the right to pass on collection costs 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.
However, what usually happens is your debtors get most upset at being stung with penalty fees 20% to 40% more than what they originally owed you. Out of their desperation and anger these individuals make up shameless lies in the form of a disputed debt in order to avoid paying anything.
So When All Is Said And Done: Despite the fact that it's your debtor who gets stung with the commission on collection, it's you who ultimately loses as you fail to recover most of your accounts.
So in short, you should only ever hand your debts over to a debt collector who guarantees recovery of your accounts~debts within a commission-free window and do so for a low one-time fixed-fee... regardless of whether or not the debt is undisputed.
More Information:
Categories
