Advantages of Hiring a Collection Agency
If a business must succeed, it should be paid for every product sold or service provided. Unfortunately, some customers are unreliable. You may have more pressing tasks to take care of than sending out letters or making repeated phone calls to collect overdue debt. Besides, the older the debt, the more challenging it is to collect. If you have had no success or you just don’t have the time or energy to continue, you can work with experts such as Fox Collection Agency.
Successful Debt Collection
A collection agency automatically raises your chances of collecting money owed. You can focus on running your business while a collection agency deals with your debtors. Remember, these agents, especially at Fox Collections, are trained professionals, so they have more knowledge and experience when it comes to debt recovery than you. On top of that, they have connections with credit bureaus and can handily report unpaid debts if necessary. Most of all, debtors know this and how much their credit scores can suffer from a collection account. Hence, they will probably work with collectors, like Fox Collection Agency, just to avoid ruining their credit.
It is common knowledge among collection agencies that businesses have unique needs, even with collections. This flexibility of collection agencies means you have big chances of finding the one that fits your business model like a glove. These agencies are either paid a flat fee or a commission from all the debts they successfully recover. You can also just sell the debt (some agencies will buy debts outright) and write it off as a tax loss. It’s all a matter of coming up with an agreement with your chosen debt collector.
There are so many federal and state laws governing the debt collection industry, and customers are not likely to balk at suing whenever they feel harassed or violated. If you aren’t very familiar with these laws, you can start by knowing that collecting debts is a whole minefield of legal complications. Third-party collectors are masters of these laws, so your debt recovery efforts are essentially safe. Of course, you need to hire a good collector like Fox Collection Agency to make sure that you are indeed protected.
Part of collection agencies’ debt collection processes is keeping records of all communication with debtors. In case there is a need for you to sue a debtor in the future, the agency can help you build a strong case. If you decide to claim the bad debt as a tax loss, this documentation will also be needed for your tax files, most especially if the IRS finds reason for an audit.