Running a business that offers a lot of credit can result in clients that get behind in payments. Most of these individuals are not trying to cheat anyone. There are some cases however where clients will just refuse to remit payment for services rendered. In these cases it may be required that you hire a national collection service in order to get your money.
You could check into hiring a lawyer to collect for you. This is not the ideal option as the law firm will be keeping half of the amount collected at minimum. You may think that getting 50% is better than getting absolutely nothing, but you do have better options that will save you plenty of money over time.
A professional collections agent will be able to assist you in getting the money you are rightfully owed. When it comes to choosing a company to represent your interests you do have some choices to make. You will have to make the decision that best suits your interests and your business model.
There are collections agencies that will collect overdue payments for you and keep a certain percentage of what is collected. This rate will vary depending upon how old the accounts are and where you are located. Generally the fees are between 25 to 33% of the money they collect. You may also encounter firms that will give a lower rate but also charge according to how many accounts is being collected.
There will be some collections agencies that will not charge a percentage but instead charge by the account. These agencies will quote you a specific price per account and will charge you for each individual client they contact for payment. This does not guarantee collection from every client. It simply means they will contact each client for payment.
When you call different collectors make sure you ask if they have a lawyer on staff. Some will employee and agent that also is a lawyer so they can send out legal notices if their phone calls and letters go unanswered. This gives them a little bit more muscle and somewhat of an intimidation factor with the more resistant clients.
Businesses with a lot of outstanding payments should not hesitate to employ a national collection service to work on their behalf. All businesses need capital and every dollar that goes uncollected affects the profitability of the business. Just because someone misses a payment does not mean they do not intend to pay you, but there are others who have no intention of remitting payment.
You could check into hiring a lawyer to collect for you. This is not the ideal option as the law firm will be keeping half of the amount collected at minimum. You may think that getting 50% is better than getting absolutely nothing, but you do have better options that will save you plenty of money over time.
A professional collections agent will be able to assist you in getting the money you are rightfully owed. When it comes to choosing a company to represent your interests you do have some choices to make. You will have to make the decision that best suits your interests and your business model.
There are collections agencies that will collect overdue payments for you and keep a certain percentage of what is collected. This rate will vary depending upon how old the accounts are and where you are located. Generally the fees are between 25 to 33% of the money they collect. You may also encounter firms that will give a lower rate but also charge according to how many accounts is being collected.
There will be some collections agencies that will not charge a percentage but instead charge by the account. These agencies will quote you a specific price per account and will charge you for each individual client they contact for payment. This does not guarantee collection from every client. It simply means they will contact each client for payment.
When you call different collectors make sure you ask if they have a lawyer on staff. Some will employee and agent that also is a lawyer so they can send out legal notices if their phone calls and letters go unanswered. This gives them a little bit more muscle and somewhat of an intimidation factor with the more resistant clients.
Businesses with a lot of outstanding payments should not hesitate to employ a national collection service to work on their behalf. All businesses need capital and every dollar that goes uncollected affects the profitability of the business. Just because someone misses a payment does not mean they do not intend to pay you, but there are others who have no intention of remitting payment.
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Ditulis oleh:
Unknown - Wednesday, October 31, 2012
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