Your Bad Debts Collected For Only
22%
Free Stuff (incl.
Start-up Kit)
Why You'll Get Results
Past Due Account Collections
Is your business running at a loss due to bad debts? Is your business under strain with the extra personnel and resources required to recover the accounts that are past due? Account collections can be made simple by outsourcing your debt collection. Many debt collection agencies are available to assist you with getting your business back on track.
Debt collection agencies are often given a bad reputation as being abusive, violent or for using strong-arm tactics to recover past due accounts. Collections agencies are now governed by United States Federal law. This law regulates debt collections agencies to ensure that debt collection practices are fair. Non-compliance could lead to agencies being fined or even being shut down.
There are many ways that a debt collection agency can assist you in recovering your past due accounts. Collections are made through collection calls. Collection calls are based on repetition in order to move the debtor towards paying. Debtors are contacted via a call center. They are contacted several times a day in order to motivate them to repay their debt. Call centers also have the ability to track statistics of when the debtor is and is not at home and calls are then made accordingly.
Another advantage of using a debt collection agency to do your past due account collections is that most agencies do not require any money up front. Generally an agreed upon percentage will be deducted only once the debt is recovered. This means that collection agencies are always highly motivated to recover the debts. The agencies are aware that they will not be paid otherwise.
Debt collection agencies can also attempt to recover debts through legal channels. This would entail suing a debtor in the hope that he/she will make payments of the accounts that is past due. Account collections are also successful through this route if the debtor fears the legal system. Using the law to recover accounts is often resource and time consuming for a business to undertake on its own. Debt collection agencies often have their own attorney who can obtain a judgment.
Once the judgment is obtained, the attorney will have legal power to get money from the debtor. This is most commonly done by serving a garnishment order to the debtor’s employee. The past due account collections is then done directly from the debtor’s paycheck. A judgment against a debtor’s assets can also be obtained. Restrictions and procedures regarding these judgments vary among states.
It is evident that a debt collection agency can do a lot by way of past due account collections. Debt collection agencies have the knowledge and resources to recover debts, that a business or individual may not necessarily have. Instead of letting bad debts bring your business down, it can do no harm to outsource your debt collection to a reputable agency. Some debt collection agencies offer further value-added services such as risk and credit management, and cash collection. This can help a business reduce debt from the outset and have a greater degree of control over the debt recovery process.
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