Any business thrives on the payments they get for their products or services. The problem is, not all customers are trustworthy. You likely have more urgent things to do than making phone calls or writing letters every now and then to collect delinquent debts. Not to mention that the older a debt grows, collection becomes more difficult. 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.
High Debt Collection Rate
A collection agency automatically raises your chances of collecting money owed. As you focus on the daily affairs of your business, a collection agency can handle your debtors. Take note that agents are professionals, meaning they know exactly how to approach debt recovery to ensure positive results, especially if you’re talking about Fox Collections. Moreover, they are well-connected with credit bureaus and will be able to report unpaid debts anytime. Most of all, debtors know this and how much their credit scores can suffer from a collection account. Therefore, they will usually be willing to cooperate with collectors, such as those at Fox Collection Agency, if only to avoid credit damage.
Collection agencies like Fox Collections know that business owners’ needs are different when it comes to recovering overdue debt. Because of the flexibility of collection agencies, you are likely to find one that is just the perfect fit for your business model. Such agencies may charge you a flat rate or a commission from each recovered debt. Another option for you is selling the debt and writing it off as a tax loss. It’s really just an issue of talking to the agency and mutually deciding which option is best for you.
Many federal and state laws cover the debt collection industry, and educated consumers won’t hesitate to sue if they feel that they have been harassed or their rights violated. If you hardly know a thing about these laws, debt collection is actually bursting with latent legal problems. 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. Should there be a need to file a case against a debtor, the agency will supply all the documents needed to establish your 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.