It could be that you run a business and at the same time offer credit services to your customers. It is normal for some of these customers to get behind in payments. In most cases, this is just a small blip because, at the end of it, they get to honor their payments. Some people simply stop servicing their payments. They even ignore all your requests to pay the money they owe you. It is in instances like these that one requires the services of the national collection service.
There are several kinds of collectors of debts. The first one is the law firms that do these collections. Although they have a fairly high collection rate, they do charge very high fees. In fact, their fee could be as much as 50% of the amount recovered. In essence, what you will recover is just a fraction of your total debt. These should not be approached unless they are the only option remaining.
There are professional collections agencies that also specialize in helping businesses recover money that is owed to them. They are also quite successful in recovering these monies. However, what they charge is different. To get the one that charges fairly, it is incumbent upon you to do a research and arrive at the best one.
Some agencies levy their fees based on the amount of money they recover. They peg this at a given percentage which can be anywhere between 25% to 33%. However, this can vary depending on the location of your business. Other than the percentage levy, there is also the volume fee. This implies charging you a certain amount of money, which is basically for the accounts you have offered to be recovered. With more accounts, you get to pay less.
On the other hand, younger agencies charge fees on every account. This means you will pay a flat amount of money on each account. The disadvantage with the method is that a flat amount is paid, and so the collector does not necessarily have the incentive to work hard and collect cash.
This method has one disadvantage that you pay a certain amount of money irrespective of what is recovered. So these guys will earn their money so long as they do any recovery. It does not goad them to work harder and recover more money.
With a lawyer in their ranks, collectors have better chances of recovering the debt. This is because the lawyer is able to give out legal notices especially to collectors who cannot be found on phone or be located at their homes. This is why it is important that whatever collection agency you go for, it has to have a lawyer as one of their staffs.
By running a business, there are chances that you will come across people whose sole intention is to cheat you on what they owe you. To get your money back, you must hire national collection service. You can concentrate on running your business, and let the collectors go after them.
There are several kinds of collectors of debts. The first one is the law firms that do these collections. Although they have a fairly high collection rate, they do charge very high fees. In fact, their fee could be as much as 50% of the amount recovered. In essence, what you will recover is just a fraction of your total debt. These should not be approached unless they are the only option remaining.
There are professional collections agencies that also specialize in helping businesses recover money that is owed to them. They are also quite successful in recovering these monies. However, what they charge is different. To get the one that charges fairly, it is incumbent upon you to do a research and arrive at the best one.
Some agencies levy their fees based on the amount of money they recover. They peg this at a given percentage which can be anywhere between 25% to 33%. However, this can vary depending on the location of your business. Other than the percentage levy, there is also the volume fee. This implies charging you a certain amount of money, which is basically for the accounts you have offered to be recovered. With more accounts, you get to pay less.
On the other hand, younger agencies charge fees on every account. This means you will pay a flat amount of money on each account. The disadvantage with the method is that a flat amount is paid, and so the collector does not necessarily have the incentive to work hard and collect cash.
This method has one disadvantage that you pay a certain amount of money irrespective of what is recovered. So these guys will earn their money so long as they do any recovery. It does not goad them to work harder and recover more money.
With a lawyer in their ranks, collectors have better chances of recovering the debt. This is because the lawyer is able to give out legal notices especially to collectors who cannot be found on phone or be located at their homes. This is why it is important that whatever collection agency you go for, it has to have a lawyer as one of their staffs.
By running a business, there are chances that you will come across people whose sole intention is to cheat you on what they owe you. To get your money back, you must hire national collection service. You can concentrate on running your business, and let the collectors go after them.
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