How To Know When You Need A Commercial Collection Agency
After you have been in business for a few years as a small business owner, you will begin to see a pattern involved with the people who will not pay their accounts. At first, they will seem to be shocked at their own forgetfulness, often followed by earth-shattering excuses on why debts can not be paid. Watch closely, it is always somebody else that did an act to make them not pay you.
There is a fine-line between the customers that are attempting to pay their debts while having unusual problems, and those who do not plan on giving you anything more than excuses. Once you have learned how to tell these two personality styles apart, it is time to start sending the ‘excuses’ over to a commercial collection agency to deal with if their overdue accounts are large enough to worry about.
Commercial collection agencies will take up to 50% of the money that they are able to collect on your overdue accounts. The theory is that if you can collect something towards the outstanding debt, this is better than nothing. It pays to shop around for the best prices on collection agencies, but never take the one that is not charging enough to cover their insurance, staff fees, advertising, and licenses or you might be waling into trouble.