Debt Collection Services

Welcome to Debt Collection Services. Our mission is to offer free and useful information on collections laws, debt collection agencies, and debt collections tips to minimize your accounts receivable. An important part of running a profitable business involves collecting outstanding receivables in a timely fashion. It makes sense to have an internal collections policy in place that is followed on every past-due account. Part of the policy should include the time frame for turning over a delinquent account to debt collection services.

Debt Collection Services

Debt Collection Services
If you decide to hire debt collection services, there are a lot of things you should consider. How much money will they collect? What fees will they charge you for the debt recovery? How will the debt collections agency treat your clients? Will they damage your reputation by being to aggressive? These are just a few of the questions you should be asking yourself and any potential debt recovery firms you may hire.

When you are looking for debt collection services, it is not always the best practice to shop for the lowest contingency rates. The contingency rate or fee is the percentage of the debt that if collected the debt collections agency retains. For instance; if you turned over a $1000 balance for debt collections, and the debt collector collected it - if they charged a 25% contingency fee - they would keep $250 and forward $750 to you.

The benefit of a collections agency charging a contingency for debt collection services is that if there is no recovery, there is no fee. But - what most local collections services don't tell you is that if they DO NOT collect your debt - the cost to you is 100%! And during the time the debt collector had your account - the account is aging and the older a debt becomes, it becomes exponentially harder to collect it.

Debt Collection Services

Today there are new cash flow issues because of tighter credit markets and the banks unwillingness to lend. So now because businesses have less access to credit, they are using collection agency services earlier and more often to help keep their businesses operational and the keep their cash flowing. Finding the right debt collection services for your business can make all the difference in successful debt collections. It is our wish that this debt collections information can help collect the money owed to you faster and with less friction.

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