In every business, there always emergers customers who don’t pay their bills. Defaulter lists goes up in today’s business circle. So what do you do? Go around the defaulters and ask for money? Ofcourse not! To ease your this challenge there are a lot of functional debt collection agency.
But, the trick is to find the right one according to your need and to ensure that it is reliable. A few things must be taken into account before hiring a debt collection agency.
What does a Debt Collection Agency do?
Debt collection agencies have a good deal of experience in getting back its client’s money. Remember there are two kinds of debtors. The first type who cannot pay owing to financial distress and the second type are the ones who can pay, but are not willing to. They simply want to run away with the money.
In such cases, the agency applies various methods to get back the money that the customers owe you. The agencies contact the defaulters through letters, emails, phone calls. These techniques mostly works, but for some stubborn defaulters, the debt collection agencies takes legal help. But that will be done with your permission only.
In some rare cases, it has also been seen that the agencies literally sue and abuse the debt dodger and even threatens them in public. They sometimes resort to hiring local goons.
If such things happen, you will be held responsible by the non-payer and he can take you and the agency both to the court of law. So, to avoid such circumstances, keep in mind a few things about hiring the best debt collection agency.
Choosing the Right Debt Collection Agency
- First consider the nature of your defaulter, whether they are commercial agency or other business. Each collection agency has specialization in either of the two. Some have expertise in mixed ones. So, conduct a thorough research before going for one.
- Different states have their various rules regarding debts and collection agencies. Make sure to learn those rules yourself and hire an agency that has a license and is bonded. Also, look into the fact that the agency you choose have the network and permission to collect back your money from across the state or region. As it may happen that the defaulter have crossed the border and in such a case if the agency doesn’t have the permission to nab him from there, then you have not hired the right one for yourself my friend.
- To keep the peace of your mind intact, make sure that your hired agency uses technology for their work. They should have softwares, through which you can access how far they have worked. Otherwise, it will be challenging for you to constantly nag them every day through phone calls or meet them asking how far have the work has reached.
- The final thing to consider is the fees structure. The agency generally collects the fees in two ways. Either they ask for a flat fee that is to say, they will do your work against a fixed amount. The second type is no work no fee. That is to say, if they are unsuccessful in bringing back your money they will not charge you. But, if they bring back, you have to pay a certain percentage of the money recovered.
Therefore the basic trick is a thorough research on the debt collection agencies, keeping in mind the above mentioned points. Also, don’t keep much hopes that you will get each and every penny back. To be honest, the whole money never gets recovered and on top of that you have to invest your money on the agency.
But as it is said something is better than nothing, so, don’t let the defaulter run away with your money. Hire an agency and get it back.