"It might be worth it to go with an agency that's more expensive if they have a better success rate," said Mahesh. Let us take some of that pressure away with tailor-made credit control and debt collection services. You may lose a customer if the agency is too aggressive with them. Through various research methods and interviews, Business.com narrowed down the search to some of the best collection agencies out there. It can damage your reputation, which limits your ability to attract new customers. There are more than 4,000 collection agencies in the U.S. If at all possible, find out what sort of debtors the collection agency most often deals with and what sort of businesses it serves. Using an agency can increase your cash flow, reduce the number of days bills are outstanding, and reduce the costs associated with keeping collections in house, such as money spent hiring staff and the time they spend trying to collect bills. It also strives to treat people with dignity and respect, to do the right thing, and be proud of how it recovers debt. It offers services such as first- and third-party collections, nationwide subrogation management, and claim recovery. https://www.vwinc.com/Â, VeriCore – This international collection agency focuses on recovery, reporting and remittance. As a business owner, look for a collection agency that charges a fair rate, has a documented high success rate in collecting debt, and does so in an ethical and empathetic manner. A collection agency takes that off your hands. One way involves verifying the debt as legitimate in a first step. November 2020: The Consumer Financial Protection Bureau recently passed a rule expanding the communication tools that collection agencies can use when collecting debt. If Summit AR doesn't collect any money, you don't have to pay. The customer makes unfounded complaints about your business, product or service. Rocket Receivable is our choice as the most affordable collection agency given its flat-rate plans and tiered services, which makes its services economical for businesses of all sizes. Agencies typically don't disclose fees on their websites, which means you have to contact them to determine just how much they charge. Key takeaway: The COVID-19 pandemic has changed the collections industry as lawmakers come up with new ways to protect struggling consumers. It uses a tailored approach to collect on commercial debts. http://tuckeralbin.com/Â, Vengroff Williams Inc. – This agency focuses on four specific collection areas: credit to cash, subrogation, revenue cycle management and collections business process outsourcing. It offers many advanced collection services like first- and third-party collections, benchmarking data, credit checks, delinquency rate modeling, and asset searches. http://www.verliance.comÂ, Your Collection Solution – This collection agency collects consumer and commercial debts. With fixed fee collections, you pay upfront and keep 100% of the funds collected by the agency. It provides basic features like first- and third-party collections, collection letters, and call services, plus more advanced techniques like accounts receivable management and revenue cycle consulting. https://www.smyyth.com/solutions/collection-management/Â, *Summit Account Resolution – This agency is our pick as the best collection agency for small businesses, and it serves both consumer and commercial collections. It handles claims of different sizes, from $20,000 to $1 million. A collection agency is staffed with experienced professionals whose sole job is to get your debt paid. It's for those reasons and more that it is our choice as the best debt collection agency for small businesses. https://rapcollect.com/ Â, *Rocket Receivables – This debt recovery agency supports collections for small and midsize businesses. It has fixed fees for newly delinquent accounts and contingency pricing for older accounts. https://www.rocketreceivables.com/Â, Ross, Stuart & Dawson Inc. – This commercial collection agency provides services to businesses throughout the U.S. Small business owners who DIY with bill collections have to be careful. A bill has been introduced in the U.S. Senate that, if passed, would only allow debt collectors to communicate with consumers in writing during a major disaster, such as the current coronavirus pandemic. Sensitivity is particularly important during the pandemic when millions of people are struggling. ...the FDCPA does apply. Small Business Debt Collection Agency Dynamic Legal Recovery Is A Vigorous Account Receivable Recovery And Debt Collection Firm Affiliated With 3000+ Attorneys, Investigative Professionals And Master Collectors Who Specialize In Creditors Rights. Collecting money from accounts receivable can be very tricky, especially when you have shared a long term business relationship with these clients. Debt collectors are governed by the Fair Debt Collection Practices Act, a federal law that protects consumers against debt collection abuse. But its members also manage more than 750,000 commercial accounts. The agency is not allowed to say if the consumer owes a debt. Here is our guide to choosing the right debt collection agency for your business needs. Collection agencies are only allowed to contact third parties, including family and friends, once and only to locate the debtor. For example, you don't have to pay a debt to a collection agency that can't prove you owe them. It provides advanced collection services, such as background investigations, credit analysis, skip tracing, legal services and payment plans. https://www.kaplancollectionagency.com/Â, TSI – This agency provides collection services for commercial, education, financial, government, and healthcare industries for both SMBs and enterprises. Founded in 1991, The Kaplan Group is a top commercial debt collection agency that only works on B2B collection. The company's pricing is set on a contingency basis. We operate across all sectors and our techniques are designed to ensure both MAXIMUM RECOVERY RATIOS and full legal … https://www.trueaccord.com/, Tucker, Albin & Associates – This B2B collection agency has a network of over 500 private investigators and attorneys to help with debt collections across the globe. The statute of limitations on debt varies from state to state. There are higher costs associated with this method, however, such as fees for attorneys as well as court costs. Get references and check them. Collection agencies are limited to seven calls per debt per week and must provide consumers a way to opt out of the texts, emails or direct messages. "We look for agencies with a stable operating history and reputation as good as our own. Small businesses do not have rights under the Fair Debt Collection Practices Act. Well, obviously call us at 800-201-CA$H (2274). New customers don't respond to your first attempt to collect the debt. Key takeaway: The benefits of hiring a collection agency are that you don't have to chase down clients, nor do you have to worry about being sued if you're collection tactics are too aggressive. Rates are negotiable. It specializes in multinational accounts and offers collection services to over 30 countries. Every case is unique, but below are five signs you need collections help: The longer you let outstanding debts go unpaid, the lower your odds are of recouping your money. "When a collection agent disregards a customer's dignity for the sake of collection, it damages [their client's] reputation. When assessing which fee structure suits your business best, consider the age of the debt, the volume of collections you typically have and the breadth of your accounts. It uses a tailored approach to connect with debtors, including phone, mail, email and online chat. Small & Medium-Sized Businesses Need a Debt Collection Agency. If a debtor pays within the first 10 days, PSI doesn't charge you. Agencies employ multiple tactics to recover debt; many of these strategies rely on technology. It has a contingency-based fee structure. We selected it based on its decades of experience, transparent pricing and track record of recovering debt. They barely have a moment to bill customers, let alone chase down late ones. ...collectors aren't limited in what they can do to collect a debt owed BY a business. We provide a completely free of cost to the creditor debt recovery and debt collection service. https://www.kbmcollect.com/, Martini, Hughes & Grossman – Martini, Hughes & Grossman offers custom approaches to debt collection. 5 Things You Need to Know about Debt Collection Agencies Before Hiring a Debt Collector When it comes to debt collection, no one wants to end up in an awkward situation! Its Stage One Fixed Fee Collections option is ideal for small businesses looking for a low-cost way to collect on past-due accounts. Many also offer an online portal, where clients can add and track accounts in real-time. IC System is our choice as the best B2C collection agency. In the long run, collections is about customer service and results; the agency is doing the job right when they're polite and dependable," he said. Next, determine which agency is handling your debt to ensure their payment. Contingency fees are charged as a percentage of the debt collected and are typically negotiable, particularly for accounts that have a significant balance owed. Posing as small business owners, we contacted the agencies' customer service and sales teams to gauge the quality of service and obtain more information than was accessible online. Collection agencies usually only offer fixed rates when the debt is less than 90 days old. For easier-to-collect debt, business owners can use the two-stage Recovery Plus program that costs a flat $14.95 per account. Your next move depends on the individual factors of the debt. Key takeaway: To help the collection agency you partner with succeed, you have to supply detailed information about the debtors you are seeking payment from. If you can find the debtor, you may still want to consider small claims court. If you wait longer than 120 days, you're far less likely to recover the debt. IC System has 80+ years of experience collecting debt. We also conducted our own research into the industry. After our early research, we whittled our list down to 17 candidates for our best picks:  Alexander Miller & Associates; American Profit Recovery; Aspen National Collections; BYL Collections; Debt Recovery Resources; IC System; Kearns, Brinen & Monaghan Inc.; Martini, Hughes & Grossman; PSI-Prestige Services Inc.; Revenue Assurance Partners LLC. We further narrowed down the list based on different use cases and the criteria we set (see Analyzing Each Service). You can also hire a collection attorney if your business is being hounded by a debt collector. Small Business Collection Agency: Debt Recovery Unpaid bills can result in a substantial financial drag on any business. This agency's website has an online portal where you can log in and monitor the progress of your past-due accounts. http://aspennational.com/collections/Â, Benjamin Michael & Associates Inc. – Benjamin Michael & Associates is based in New York City. Collection agencies are a good alternative when you can't contact the debtor, when the debt is too large for small claims court, or when you have several hard-to-collect debts. Whenever the scope creeps or deliverables expand, document all changes in detail in a contract amendment or Change Order—and get it approved before incurring additional costs. It also offers precollection services, post-judgment collection, skip tracing and online status reports. A collection agency also frees you up to focus on running and growing your enterprise. A large, national firm is not necessarily a better fit than a small, local one. COLLECT4U debt collection agency is committed to serving the financial needs of individuals and businesses. Our personal collections experience and communications with other agencies and law firms convinced us there are better ways of collecting your debts – faster and with a higher collection rate. But first... Below are a few potential alternatives before seeking help from a collection agency. You want a company that's a good fit with your business and has good ethical collections practices. It operates in all 50 states in the U.S. and serves a variety of industries, including banks, municipalities, credit unions, insurance agencies, retailers, manufactures, and education providers, among others. But accepting debt needn’t be an inevitable part of business life. A collection agency takes the pressure off you to awkwardly confront customers about money they owe you. Its Recovery Plus program charges $14.95 per account. What to Do When You Need a Small Debt Collection Agency. IC System send demand letters informing the customer he or she is in collections. Debt collectors are regulated by the federal government, through the Fair Debt Collection Practices Act (FDCPA) for personal debts. Sensitivity is particularly important during the pandemic when millions of people are struggling. A collection agency is prohibited from threatening to garnish wages, seize property or employ any legal actions, unless you plan to sue to recover the debt. Stage Two Contingency Collections is designated for accounts that are more than 120 days late. Customers who still won't pay after you've worked out a payment plan are more likely to default on their debt. The agency may recover a portion of what you're owed, if not all of it. Once a business owner sells a past-due debt to a collection agency, it is out of their hands. Heading into 2020, the industry was focused on new rules and regulations regarding debt collections, increased competition, and declining commission rates. If you ask for a quote over the phone, ask the agent to email you the quote. If the demand letter doesn't get a response, then it's time to get help from a collection agency. You have less chance of being sued if you hire an accredited and highly rated collection agency. Business owners can tailor their collections with two levels of service and price points that IC System offers. The company states that it has collectors who specialize in trucking transportation and freight, wholesale seafood and produce, restaurant supply, and heavy equipment rental. https://www.amafirm.com/Â, American Profit Recovery –  American Profit Recovery serves a wide variety of industries, including small businesses, lawn care/landscaping and banking. The customer has a history of financial irresponsibility. First, give debtors a few opportunities to pay what they owe. The odds of collecting debt get slimmer the older it is. You could still consider hiring an attorney to collect a specific debt. If the debtor can't be found, even by the collection agency, you may just have to give up. You’re not entitled to any of the money they recover. The biggest downside of working with a collection agency is that there is a fee for doing so. It is important that any organisation involved in recovering debt is aware of its legal obligations. A lifetime New Yorker, I am a veteran finance and business journalist that has contributed to several national media outlets including Forbes, Investopedia, and Bankrate.com. This doesn't mean they can use illegal practices like threats and fraud. But if all your emails, texts and calls go unanswered, it's time to take more aggressive action. Here is a full list of collection agencies and a summary of what each company claims to offer. The short answer is: yes – and no. It caters to all commercial accounts and medical billing accounts, using a four-step system to collect funds from debtors. http://rapidrecoverysolutions.com/Â, Revenue Assurance Partners – Revenue Assurance Partners customizes its service to suit your business. Jean Murray, MBA, Ph.D., is an experienced business writer and teacher. In accordance with current late payment legislation our costs are added to the outstanding balance to be paid by the debtor and the creditor receives 100% of the invoice sums they are owed as soon as we collect payment. Getting customers to pay is among the big ones. This alphabetical list also includes our best picks.Â, Account Management Systems – AMS collects commercial debts. They are reaching out to your clients on your behalf. Our 3-phase process covers all avenues of collection attempts. Since your business still owns the debt, you can take it back and continue to work on it if the collection agency fails. They are also not allowed to send documents that look like it came from a court or attorney. Debt collectors can't make false statements, including accusing the debtor of committing a crime or posing as an attorney. PSI offers 10-day free demand services and free final-notice forms. Confession of Judgment in a Business Loan? It provides commercial collection services throughout the U.S., Mexico and Canada. You also want to know what tactics the agency employs to recover debt. We break down our best picks and explain legal considerations, risks, and rewards. There is a $50 minimum collection balance, which is affordable for most SMBs. However, if you pay a 35% return rate and the agency collects $500, you reclaim $325.