Online stores who are in America with overdue accounts in America can hire a professional commercial collection agency to attempt to retrieve money for them. Commercial collection agencies normally charge a percentage of the money that they collect for their services, and at times also charge a monthly fee.
The place to hire the collection agency is normally in the region that your debtor lives. Commercial collection agencies often know local deadbeats through prior collection problems and if you choose to hire a service in their neighborhood it can save both time and money. The time to hire an agency is instantly after the payments quit coming in.
Business owners, regardless of the size of the operation, are in business to make a profit, not give their money and/or services away. Uncollected debt affects the bottom line and steals focus from the business at hand. Before employing a commercial collection agency, consider the following:
1. Does the amount of outstanding debt warrant the use of a commercial collection agency? Evaluate your accounts receivable and calculate a dollar amount where hiring a commercial collection agency becomes a worthwhile expense.
2. Does the commercial collection agency follow the Fair Debt Collection Practices Act? The manner in which the debt is collected is viewed as an extension of your business.
3. Is the commercial collection agency capable of skip tracing? Skip tracing utilizes various databases to track down debtors who have moved away without leaving a forwarding address or a valid phone number.
4. Is the commercial collection agency licensed and insured? Make sure the agency is licensed for collection in the state(s) in which the debtors reside. Also make sure that the commerical collection agency has Errors and Omissions insurance. This protects the collection agency and your business in the event that a debtor sues over the collection tactics used.
5. What are the fees and the success rate of the commercial collection agency? Is there a set fee or do they operate on a contingency basis? Ask about their collection success rate.
Take the time to compare several commercial collection agencies to find the right match for your business.
Commercial collection agencies are available to both large and small businesses. When a business has overdue accounts, the time to hire a commercial collection agency is instantly for the best chance of recovering funds. As you are searching through the Internet lists of available collection agencies, remember to keep yourself safe.
Good commercial collection agencies are those that have been in business for five-years or longer. The agency should have an insurance program in place that allows for you to collect on if a member of their staff causes your debtor to sue your business. Money that is collected by the agency on your behalf should always be housed in a trust fund with your name on it in their business until it is paid to you.