Collection Agencies and The Businesses That Hire Them

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Collection Agencies and The Businesses That Hire Them

 

Collection agencies are organizations that secure defaulted payments for both consumers and businesses. These organizations are licensed and authorized to use certain tactics to receive payments from past due bills and invoices. Collection agencies usually receive a percentage of the total debt that they collect from a business or consumer. For example, a collection agency will collect 30% of the total debt payment they receive for every dollar collected. 

 

Many debt collection agencies also purchase debt from a business or creditor and then collect the funds themselves. This often happens when the original creditor or business is unable to receive past due funds after three to six months. A collection agency purchases the debt for an amount much that is of a lower value than the original debt owed. However, they have complete ownership of the debt and can now do anything they want to recover it. When they purchase the debt, they now become the creditor and the party responsible for receiving payment of a given debt. Collection agencies are allowed to file lawsuits against those who owe debts if both parties are unable to arrange an agreement to repay the debt. However, some businesses decide to write off the debt as outstanding and cannot be collected. As a result, they do not refer the debt to a collection agency.

 

There are numerous businesses and professionals that enlist the services of a collection agency in order to collect the balance of receivables that they have. A number of physicians often work with collection agencies to help them recoup outstanding bills from medical services provided. Physicians, hospitals and medical clinics usually hire collection agencies to assist them in receiving their expected revenues. Along with healthcare practitioners and establishments, other professionals such as chiropractors and dentists often use collection agencies to help them obtain payments for services rendered. Some law firms often have bills that are past due and use collection agencies in order to receive payments for their services.

 

As well as professionals, many other types of businesses use collection agencies as well. These businesses often sign a contract with customers and then use collection agencies to recoup losses from delinquent accounts. In most cases, a person goes into the contract with good intentions but for a number of different reasons are not able to make the scheduled payments that they agreed to. The most common types of businesses that use collection agencies to receive past due payments include gyms, cell phone providers, television programming companies, car dealerships and contractors.

 

Any business or professional that has not received any payments for services rendered will benefit by using the services of collection agencies. Collection agencies provide their clients with a couple of key benefits. With these benefits, professionals and businesses will be in a better position to settle their debts and receive payment for the services they provided.

 

One of the main benefits of using a collection agency is that it will save time. Rather than the professional or business spending time collecting the debt themselves, a collection agency can complete this task on their behalf. A collection agency will make the contacts to the person or business and look to arrange a settlement for the debt. They negotiate the payment terms and eventually work towards getting the professional or business the money that they are owed. With saved time, businesses and professionals can focus their time on profitable activities.

 

Another benefit of using collection agencies is to help save you money. Rather than paying an expensive lawyer to sue the customer or business, a collection agency will just ask for a small percentage of the total amount owed. The professional or business is not liable for the percentage until it receives the collected funds. As a result, collection agencies can significantly lower the total cost of collecting payments from customers who have delinquent accounts.

 

With collection agencies, businesses and professionals can rely on a party which has expertise in negotiating with the customer or business. They can arrange payment plans that are affordable for the customer or business and ensure payment in the near future. Their ability to negotiate payment plans and collection of funds allow collection agencies to offer terms that are more manageable for the customer or business that owes money.

 

Running a business and professional practice is quite demanding. Things can get very difficult for any business if they don’t receive payments for the services provided. While this situation can be hurtful for the business, they can use the services of a collection agency to assist them. With a reputable collection agency, businesses are in position to more efficiently receive payments for any amount that is owed to them.

 

Get Your Money. Call Now 321-710-3530

We are experts at collecting debt previously deemed “un-collectable debt”.

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