4 Tips for Making Bad Debt Recovery Easier

You probably don’t want to think about what would happen if your clients chose not to pay you. However, it’s a problem that business owners deal with every day. If you don’t want to simply write off those missing profits, you need a debt collection agency.

But if you don’t follow these 4 tips, your bad debt recovery will be harder than it needs to be!

1. Look for a nationwide business collection agency

Bigger isn’t always better, but it can give you an advantage when it comes to bad debt recovery. After all, the “big guys” are big for a reason. Chances are you’ll get better service from a nationwide business collection agency than you’ll get from the small agency down the street.

Another perk to going with a big agency?
They’ll have a bigger staff — meaning they’ll have the manpower to get to your bad debt recovery sooner rather than later. After all, time is money!

2. Make sure they handle your specific state

Hiring a giant debt collection agency doesn’t do you any good if they don’t have experience working in your state. Remember, different states have different debt collection laws. The last thing you want is to lose out on your bad debt recovery altogether because your collection agency inadvertently broke the law!

3. See if they have lawyers on-staff

Unfortunately, bad debt recovery isn’t as always as easy as making a few phone calls and getting your delinquent client to pay up. In many cases, people ignore the efforts of a debt collection agency altogether.

So, how do you get your money back?

Sometimes, the only way to get what you’re owed is to file a lawsuit against your delinquent client. Luckily, you can make that a whole lot easier by finding a debt collection agency that has lawyers working on-staff.

How so?

If traditional collection efforts fail, your agency can simply pass the case off to its lawyers. Instead of you having to go out and search for a lawyer, the work is done for you. And, the case can move faster because you won’t have to waste time getting your lawyer up to speed. Your debt collection agency will do that for you, too!

4. Do your homework on fees

Unfortunately, you won’t get to keep all of the money from your bad debt recovery. That’s because every collection agency charges a fee based on a percentage of the amount they recover for you. Since those fees can vary widely from one debt collection agency to another, it’s important to make sure you’re paying a fee you can live with. If you feel like you’re going to hand over too much money to your agency, look for another one!

If you’re looking for a debt collection agency you can trust, look no further than PSI Collect!

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