Tag Archives: debt collection tips

collection-agency

Protecting Your Profits when Using a Collection Agency

It is important to recognize how collection agencies make money from debt collection services. Most collection agencies simply take a percentage of the recovered funds, meaning services do not need to be paid for upfront. It is best to avoid collection agencies that charge fees and retainers before any funds are recovered.

The payout amount often depends on a few main factors. How old the account is, the volume of accounts, how much money is owed, and the collection agency’s percentage payout policies will all influence your bottom line. The best choice is a collection agency that provides fast recovery, large percentage payouts, and guarantees. That way, your money is not at any risk and you only stand to profit.

The guarantee offered by Rapid Recovery Solution ensures the collection agency does not get paid until you do. Clients of RRS receive access to a skilled network of attorneys, advanced debt collection methods, experienced debt collectors, and skip trace services without upfront fees and retainers. Receive a free quote and enjoy risk-free debt collection that will get you paid.

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Making Collection Practices More Successful

Feel like your accounts receivable department can do more to aid debt collection? Even the largest, most-powerful businesses face struggles in this area. Many customers are quite good at escaping collection calls, and some have been known to even skip town.

The first line of defense against loss of funds is to develop and implement strong debt collection practices.

  • Contact customers frequently to ensure they know about the debt. Trying various forms of communication (mail, electronic mail, phone, etc.) can lead to additional success.
  • Have resources on hand when customers do contact you about a debt. Being available to take calls and address concerns and questions can increase the chances for recovery. Facilitate clear, professional communication and be willing to negotiate in terms of unpaid debt.
  • Treat customers with respect. Don’t assume a customer is trying to swindle you or simply avoid paying. They may not be able to pay at the moment or may not have the full amount. Again, keep an open mind and have policies in place for fair negotiations. Recovering some money is much preferable to recovering none.
  • Have guidelines in place for referral to a debt collection agency. After a certain length of time or certain amount of debt unpaid, difficult cases should be referred to a debt collection service for assistance. A debt collection service can help recover funds quickly and get the problem taken care of.

Rapid Recovery Solution offers free quotes and fund recovery guarantees. Find out more and add a quality debt collection agency to your arsenal.

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Tips For Hiring a Debt Collection Agency

Businesses do their best to recover owed debts, but some cases simply are too difficult to handle alongside regular business operations. Your time and money are important, and debt collection often consumes both. Hiring a qualified debt collection agency can reduce the strain on your business and recover funds once and for all, freeing up employees and departments to focus on other important projects.

Consider Your Needs

Is your business a small home-based operation, a small to mid-sized firm or a large company? Are your cases very difficult, or are you simply looking for a helping hand? Look into various companies and see if their services match what you are looking for. If you’re trying to track down funds owed by a large business, for example, a company that only specializes in small claims probably won’t fit the bill.

You’ll also want to ensure the debt collection agency is well-equipped to successfully collect your money. One service offered is known as “skip tracing”, and it helps track down debtors who have left the area with little or no trace. These cases are very difficult for businesses to handle on their own, but debt collection agencies are professionals equipped with special tools and methods to get the job done.

Consider Qualifications

In addition to what the company offers, you will also want to ensure the debt collection agency of your choice is properly licensed and follows legal regulations and rules. You definitely don’t want to hire a company that uses unfair practices to collect debts, as such behavior can tarnish the reputation of your business as well. You will also want to be sure the collection agency has insurance to protect against cases where debtors sue. Obtain proof of insurance right away to protect yourself from liability if the collection agency uses inappropriate practices.

“A collection agency should make an effort to provide you with the information you need for successful collections. A company that keeps you in the dark should be avoided,” says John Monderine, president of Rapid Recovery Solution. Rapid Recovery offers free quotes and regular articles with collection tips, showcasing their transparency and skill before businesses even contact them. More information generally does lead to better results, and it is something to watch for in your research.

Consider Costs and Guarantees

How much does each agency charge, and is there any guarantee or time limit? The last thing you need is a shady debt collection agency wasting your time and money with a never-ending case. It’s best to hire a collection agency that adheres to clear guarantees. Most agencies won’t charge you a fee unless the money is recovered. Of the recovered amount, agencies generally take a cut depending on how difficult the case was. Remember, receiving some of the money you are owed is better than not receiving any of it. Hiring an agency early will generally be cheaper, but do be sure you’ve gone through all reasonable options before hiring one. An experienced agency like Rapid Recovery will be able to provide quick recovery of funds at a rate that works for your business.