Collection Agencies and Collection Attorneys: Things to Look For When Choosing One

Hi,
When choosing the right collection agency to recover debts for your small business, it is important to investigate the following:
1) The majority of collection agencies work on a contingency basis, and are generally competitive with one another. Call a few agencies in your area to set up sales calls. After talking to a few salespeople, you will know what the going rates are for collection assistance in your area.
2) If your accounts are across the U.S.A., it is important to deal with a collection agency that has offices across the country.
3) It is generally a good idea to visit the office of the collection agency to get a feel for how they do business. When visiting the office, inquire about the agency's reporting procedures on the status of accounts turned over to them for collection.
4) Make a phone call to the Better Business Bureau and the office the State Attorney General to find out if any complaints have been lodged against the agency.
On larger accounts, small businesses may want to consider using a collection attorney. Collection law is fairly basic and therefore many attorneys can do the job, although few care to get involved in the field. Due to the exorbitant fees attorneys charge, it is prudent to get a collection attorney that will operate primarily on a contingency basis. To find a contingency attorney that is right for you, consider some of the following:
1)Negotiate a flat rate for legal demand letters, as often that is all it will take to settle the account.
2) Obtain the amount of all costs involved in filing lawsuits in your area, so when the time comes, you will be aware of that expense.
3) Set up a reasonable reporting schedule in order to be informed about the current status of accounts. This will eliminate unnecessary costly phone calls to the attorney.
4)When selecting a collection attorney, consider using the services of a newer law practice which might have more time to devote to your needs.
If all internal collection efforts have failed, utilizing either one of these methods may be a better decision than carrying delinquent accounts until the statue of limitations has expired.
Tomorrow I am going to start talking about how to set up a credit and collection system for a small business.
Until then,
Alan