In order to thrive, a business needs payment for each product or service offered. Unfortunately, some customers are unreliable. You probably have more urgent tasks to do than calling people or writing letters to collect delinquent debts. Not to mention that the older a debt grows, collection becomes more difficult. If your efforts have been largely unsuccessful or you just no longer have the time or energy to keep going, you can hire professionals, such as Fox Collection Agency, to do the job for you.
High Debt Collection Rate
Working with a collection agency substantially improves your odds of collecting longstanding debts. While you focus mainly on your daily operations, a collection agency can take care of your debtors. Remember, these agents, especially at Fox Collections, are trained professionals, so they have more knowledge and experience when it comes to debt recovery than you. Additionally, they have established ties with credit bureaus, allowing them to report unpaid debts whenever needed. Best of all, debtors are aware of this and how big an impact a collection account can make on their credit scores. Thus, they will likely want to work something out with your collector, especially if it’s Fox Collection Agency, just to prevent potential damage on their credit.
It is common knowledge among collection agencies that businesses have unique needs, even with collections. This flexibility of collection agencies means you have big chances of finding the one that fits your business model like a glove. Such agencies may charge you a flat rate or a commission from each recovered debt. Some will also just buy the debt outright and you can write 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 don’t know a lot about these laws, collecting debts is actually a minefield of potential legal issues. Because third-party collectors are highly knowledgeable about these laws, you can expect them to keep you legally safe. Certainly, you have to choose a reputable agency like Fox Collection Agency to ensure that you are actually protected as you must be.
Collectors such as Fox Collection Agency make it a point to document 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. Even if you decide to write off the debt as a tax loss, you’ll also need such documentation for your tax files, most especially in an IRS audit scenario.