Whether you have a small or a big business, you probably might be facing issues with customers who do not pay their pending bills even after receiving the products or services. This can tamper your profit margins to a great extent. The workforce you have in the company will probably not be efficiently trained to recover the past due bills, and besides, giving your employees a brand new task can baffle them. It will also waste your time because the primary operations of the company can get delayed.
To get your unpaid bills paid quickly, you can
for your company. These agencies have a vast knowledge about debtors and know tactics through which they can get the bills paid. Collection agencies work for any size of business. There are various laws that collection agencies must abide by during the debt collection process; these laws vary in each state in the US. But, violating the debt collection laws can also lead to a lawsuit for your company.
People in the healthcare industry are the ones who need the services of a collection agency most because patients resort to malpractices to avoid paying their bills, which is why a medical collection agency is hired to recover debts from accounts that are 90 days past the due date.
The debt collection methods for consumer debts differ from that of commercial debts. Consumer collection agencies usually demand fixed fees while commercial collection agency demands a contingency fee on the percentage of the total debt recovered. The fees percentage ranges from 20 to 50%.
that charges a lower fee can allure you, but it is not something you should go for. If an agency is charging a lower price, it probably doesn’t have experienced debt collectors. Skilled and seasoned debt collectors will charge high costs, but the recovery rate they offer will be much better than that of a collector who charges low fees. However, a debt collector should know how to collect the debts by fair practices; otherwise, it can hinder your company’s image.
A right debt collection agency will provide you with services like skip tracing and has an
that will run a bankruptcy check on your debtors to enhance the recovery rate. There are numerous debt collection agencies in the USA, make sure you choose a collection agency that complies to the laws under the FDCPA ad HIPAA. You can also get the help of fellow acquaintances or doctors to suggest the right collection agency that they know.