If you are a business owner and have several debts in your accounts payable that have gone beyond a normal time frame when you expect to collect, you need to look into the possibility of hiring a
collection services agency. There are different time frames for different businesses, but whether it is 60 days, 90 days, or even more time, the moment you go from reminding people of a late payment, to trying to collect on a debt, is the moment you need to hire professional collection services.
Too often a business owner will try to collect the money by himself, while others will delegate the responsibility to one or more people working in accounts payable; but these people seldom have the specialized knowledge and skills needed to collect on the money. Those that work in the field of collection services know various ways to get the money that is owed to you. They are not always successful, but to be sure, they will show a better result than a business owner that has had in the past.
Larger corporations have their own internal collection divisions, but many of them will contract the work out to professionals. The reason for this is that it cost nothing unless money is collected. If money is collected, the agency will take a commission for their effort. What this means is that if the agency is not successful, the business pays nothing. There really is no downside to hiring a collection services agency. This is true for a small or medium size business as well as a large corporation.
The commissions charged by a collection agency will be dependent on several factors. One will be the particular agency you are doing business with. The more successful they are, the more they will charge, and this is to be expected. However, there are variations in commissions. They are dependent upon how many accounts you bring to the agency as well as how large the dollar value of the accounts are. The more debt you bring to an agency the less the commission will be, and the higher the dollar amount per account, the lower the commission. Some agencies have a specialty with large dollar accounts and may be able to collect a greater amount of the outstanding debt.
For many business owners, the thought of using collection services has never occurred to them. When you consider that the cost is basically zero, unless the money is collected, it pays to hire an agency to work on your behalf to get even a partial of the amount owed. This is the barrier to overcome for many business owners: the realization that the money is not going to be collected without professional help. Whatever money can be collected at this point is like a bonus. It is found money. When a business owner can accept this, the assistance needed is only a phone call away. You can also contact an agency over the Internet. Either way you can get a quotation for the amount of debt you have that needs to be collected.
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