Advantages of Hiring a Collection Agency
Any business thrives on the payments they get for their products or services. The problem is, not all customers are trustworthy. You probably have more urgent tasks to do than calling people or writing letters to collect delinquent debts. On top of that, debts grow old and become harder to collect. If you have constantly failed or you have run out of time or energy, you can partner with professionals like Fox Collection Agency.
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. Take note that agents are professionals, meaning they know exactly how to approach debt recovery to ensure positive results, especially if you’re talking about Fox Collections. Additionally, they have established ties with credit bureaus, allowing them to report unpaid debts whenever needed. Most of all, debtors know this and how much their credit scores can suffer from a collection account. 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. These agencies are either paid a flat fee or a commission from all the debts they successfully recover. Another option for you is selling the debt and writing 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. Third-party collectors are masters of these laws, so your debt recovery efforts are essentially 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. In case there is a need for you to sue a debtor in the future, the agency can help you build a strong case. If you decide to claim the bad debt as a tax loss, this documentation will also be needed for your tax files, most especially if the IRS finds reason for an audit.