Debt Recovery

• We have been delivering excellent recovery rates for businesses near you for over a decade.
• Our Google rating is 4.85 from Over 2500 reviews.
• We are low cost, secure, compliant and we understand that your business relationships should be protected during collections.
• Licensed in all 50 states, with multiple locations across USA.

However, do you know that the physical location of a collection agency really does not matter.

Hiring a collection agency significantly differs from hiring a local Plumber, Cleaner or Mover.

Working with a non-compliant agency = Big trouble for you.

Go for a better collection agency licensed to recover money in your state regardless of their location. Look for an agency with a higher recovery rate, follows all debt collection laws, protects your reputation during the collection process, has data protection checks in place, and offers cost-effective solutions.

Are you a Small Business owner or a Medical Practitioner searching for a Collection Agency near you?

You are not alone. There is a common misconception that a local collection agency will be more effective, provide better service, and recover more money from your debtors versus the one on the country’s other coast. Not True. 

Need a Collection Agency with good recovery rates? Contact Us Serving Clients Nationwide Debt collection offices located all across USA

Stop searching for a “Collection Agency Near Me“. Give us a chance to explain why.

• You will never visit the Collection Agency’s office to submit accounts. Instead, you will send your past-due accounts from your home or office through their secure website.
• Similarly, a local Debt Collector will never personally go to your debtor’s house to collect money. The debt collectors either send collection demands, make calls, or hire an attorney to recover money. Then why restrict yourself to hiring a Collections Agency near your home or office?
• Have you ever checked if your other bills, like utility or insurance bills, were generated locally or from a different city? You don’t. Similarly, debtors don’t care if payment demands originate from a local agency or an agency elsewhere.
• If your debtor relocates to a different state, your local collection agency won’t be able to pursue your account anymore. Very few collection agencies have a license to collect in all 50 states.

If a collection agency covers all 50 states and has good reviews, it’s ideal. Whether a Collection Call or a Collection Letter to your debtor originates from your city, verses from New York or San Francisco does not matter.

How to Shortlist a Collection Agency? Hiring a collection agency with higher recovery rates is more important. They should treat their debtors with dignity and respect. Ensure that they are sufficiently insured for your protection in case there is a dispute or a lawsuit from the debtor’s side during the collections process. They are licensed to collect in all 50 states. They hire top-of-the-line debt collectors. They recover more money and protect your reputation during the collection process. You would be sharing a lot of personal information about your debtors. Are you sure the agency closest to you handles that data securely? What would happen if that data gets stolen? You can get in a lot of trouble. Therefore the first thing is to ask if they have proper security measures and well-audited security certifications. The agency should have been in business for at least 5 to 10 years. What is the experience of their management and debt collectors? What is their collection fee? Could there be any hidden fees? The collection agency near you may be charging a higher fee despite having a low recovery rate.  Do they offer collections in both English and Spanish? Do they sincerely follow all federal and state laws like the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA) and Health Insurance Portability and Accountability Act (HIPAA)? They offer more products than contingency-based Collection Calls. Do they offer a cheaper 1st and 3rd party Collection Demands option, suitable for accounts less than 120 days old? How important is it for you to have all their debt collectors based in the USA? If so, ask them. Do they send collection letters in plain “Black & White” print or more attention-grabbing “Colored Prints”? A right collection agency may charge 10%-15% more because they have better resources and far better collection rates.  The collection agency should also do several “scrubs” like – Change of Address, Bankruptcy Check and Litigious Debtor Check, without charging you anything extra. It should be a part of their standard collection process. Collection Demands service requires accounts to be purchased in advance. What happens if there are any unused accounts? Do they have an expiration date for them? Some good collection agencies allow you to use these new accounts for many years, instead of forfeiting them after six months or two years. Do they have a secure online portal to enable you to submit new accounts for collections, run real-time performance reports and stop the recovery process on accounts after payment is received? The list goes on…

Therefore, if you are searching for a “Collection Agency near me, ” you may be making a mistake. You are not alone. Many small businesses have this natural tendency. All that matters is whether or not a Debt Collection Agency is licensed to collect in your state.

A local presence matters only when an account gets transferred for legal collections because a legal suit against the debtor will be filed in the local court, depending on your jurisdiction or county. The good news is that almost all good Collection Agencies have a nationwide network of attorneys. Their fee is usually the same if you go through a Collection Agency or approach them directly. Since Collection Agencies regularly transfer their accounts to local lawyers near you, they are likely to act more seriously when a Collection Agency is involved because it also impacts their future business.

We hope this article was helpful, regardless you are located in New Jersey or California!

Contact us, and we will connect you to a Collection Agency (for free) with experience in your industry that delivers higher recovery rates and is fully licensed to collect money in your state.

Operating a towing business or being a tow-truck driver involves considerable hard work and planning. Challenges of a towing business include paying for the tow truck mortgage, fuel costs, monthly insurance premium, repairs & maintenance of the truck, fatigue, marketing business on Yellow Pages or Google, dealing with disgruntled vehicle owners, poor driving conditions, accounts receivable, competition, business expenses, uniform and miscellaneous expenses.

Past-due accounts are a significant drag for towing operators.  This hurts their cash flow and profitability. This situation arises because of dishonored checks, payment disputes, damages, or just because a car owner did not fulfill their obligation to pay as promised.

Without a clear, enforceable policy for payment collection, towing companies can have difficulty receiving payments for their services. Towing businesses, especially smaller ones, may lack the resources or expertise to manage accounts receivable efficiently, leading to cash flow problems.

Need a Collection Agency? Contact Us

Tow truck businesses do not have an in-house expert to collect late payments while adhering to the federal/state collection rules and regulations that must be followed when recovering a debt. Not following these guidelines can lead to a lawsuit from the vehicle owner. To be honest, vehicle owners are usually not that serious when the employees from a towing company request them to make payments. However, all that changes when a Debt Collection Agency gets involved.

When a debtor (vehicle owner) gets that first written demand or a phone call from a Collection Agency, he knows that the matter has been transferred to experts. Dent collectors will continue to demand payments legally for a very long time and may take the debtor to court as a last resort. They are a lot more inclined to settle the matter. Collection agencies have subscriptions to various tools like “Advanced Skip Tracing“, which help them locate a debtor who has relocated due to genuine reasons or hide from his payment obligations.

Transferring an account to a collection agency after 60 days of non-payment is highly recommended for the towing business. This maximizes the chances of recovery and amicably resolving the matter. The three-step process followed by collection agencies switches from diplomatic collections to intensive collections as time passes.

Customers may dispute the charges if they feel the cost is too high or unfair, especially when they did not request the towing service directly (like in the case of parking violations or accidents). If a vehicle has been impounded due to legal issues, there may be delays or difficulties in receiving payment until the legal matters are resolved.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls a debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

 

Glass replacement and repair companies assist clients whenever glass breaks or loses alignment. Common glass repair services include replacement of double pane windows, windshield, laminate glass repair and other breakages involving mirrors, storefronts, partitions, shower doors and glass closures, Glass repair companies can be privately owned and operated, or work as a franchise of a larger organization (like GlassDoctor). They serve both residential and business customers.

It is very common for Glass repair companies to have several accounts receivable, many of which are eventually written off as a complete loss in accounting books. To minimize losses due to unpaid bills, it is important to have a good receivables strategy. Accounts that have not paid after 60-90 days, despite regular payment requests such as reminder calls and mailing invoices, have little chance to get resolved ever. Usually, the effort put into follow-up on these accounts after 90 days goes waste because the little recovery that happens from a handful of late-paying accounts, gets wiped off by the time and cost that gets put in to attempt recovery from your overall delinquent accounts.

Once payment has been due for over 90 days, Glass repair should definitely take full advantage of the two-step collections process offered by collection companies (Attorney-crafted “Collection Letters” and “Collection Calls” from an Expert Debt Collector). Collection agencies are extremely effective and efficient in collecting money.

Collection Letters Service

Upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Need a good debt collections agency: Contact us

While you focus on expanding your business, meanwhile collection agencies work as an extension of your office to recover money from your past due accounts.

You have a restoration company that helps homeowners from damages caused by water, fire and mold. You have worked hard to build your business. However, several clients have not kept up with their obligation to pay for your services. Unpaid bills have increased and are now restricting your cash flow. It is probably the right time to hire a Collection Agency to turn those accounts from red to black.

Serving Restoration Companies Nationwide Need a Debt Collection Agency? Contact Us Higher Recovery Rates : Restoration collection experts!

NOT getting paid is NOT an option
Restoration companies must often invest in expensive equipment, tools, and trained personnel. The cost of maintaining and upgrading this equipment can be substantial. The demand for restoration services can depend highly on seasons or unpredictable events, such as natural disasters. This can lead to inconsistent income. Insurance companies may also dispute or deny claims, leading to further delays or non-payment. Therefore restoration companies cannot effort not getting paid for the work done.

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Apart from the complexity of running a small business, ever-changing market conditions, the pressure of complying with rules and regulations, hiring & retaining top talent and getting new clients can be quite challenging.

Restoration companies can be privately owned and operated or work as a franchise of a larger organization ( like ServPro, ServiceMaster, Rainbow, Duraclean, etc). They typically serve both Residential and Commercial clients. Restoration professionals have a lot on their hands.

The chance of getting paid drops significantly once payment has been due for over 60-90 days. Restoration Companies should take full advantage of the two-step recovery process offered by most collection companies (Attorney crafted “Collection Letters” and “Collection Calls” from an Expert Debt Collector).

Collection agencies have vast experience in recovering money for their clients. Their tactics can never be matched by your in-house staff trying to recover money under your own business name. If nothing works, they can take the debtor to court.

Although collection agencies do not put “Mechanics Lien” on a property, trying to recover your money today is highly recommended, rather than waiting years to seek unpaid compensation. Customers might dispute the quality or extent of the restoration work completed, leading to delays in payment.

Insurance policies often cover restoration services, which introduce a third party into the payment process. This can complicate matters, as the insurance company may dispute charges, delay payment, or require extensive documentation before releasing funds. Collection agencies can also send notices to insurance companies.

Our collection partners have extensive experience in recovering money for restoration companies.

While you focus on expanding your business, meanwhile collection agencies work as an extension of your office to recover money from your past-due accounts. The average unpaid balance of restoration companies is between $5,000 to $10,000, therefore selecting a collection agency with tremendous experience in recovering for your industry is essential, and they must provide some references if requested by you.

Need a good debt collections agency: Contact us

A Collection Agency is your business partner. The criteria for shortlisting them cannot be the same as shortlisting a plumber.  

Collection agencies are well aware of the Contingency Fees of their competitors. Agencies that charge a higher Contingency Fee than their competitors are not foolish. There is a solid reason why their fees are higher than others. Agencies that charge higher usually go to great lengths to recover your money.

It is more important how much more a collection agency recover and not how much they charge. Good debt collectors are in high demand and will not settle for a smaller paycheck. 

An agency accepting to collect at rock bottom Contingency Fees is probably not devoting enough resources or not engaging the best debt collectors. Quite likely, the recovery rates of such agencies are lower. Agencies using inferior-quality of debt collectors are a risk to the reputation of their clients.

Collection Agencies have high overhead costs:

• Employing experienced and top-of-the-line debt collectors is expensive. Individuals who make these collection calls (Debt collectors) are commission-based contractors. They get a small percentage of what they collect. If the agency’s Contingency Fee is too low, then the income of their debt collectors also goes down significantly.
• To maintain proper supervision and to provide a professional workspace for the debt collectors and support staff, adequate equipment and USA-based infrastructure are highly desirable. For Example: Do you want low-wage debt collectors who work from home or those located in a foreign country to handle your accounts?
• To regularly train Debt Collectors on the latest changes in Federal and State laws and ensure they do not violate debt collection laws is extremely important and that, of course, has its financial overheads.
• Handling data securely and performing annual security audits are not cheap. You will be sharing a lot of personal data of your customers with them. Can you imagine the liability if your company is sued in case your customer’s data was stolen from the premises of a 3rd party collection agency?
• Subscription to various services and tools required for effective debt collections is not cheap (For example:  Advanced skip tracing service, not just a Basic skip tracing for the namesake).
• To be licensed, bonded, and insured against possible counter-lawsuits is important and costs money.
• Providing a customer-facing portal to submit and monitor accounts, run performance reports and upload documents securely results in IT costs too.

Hiring a collection agency just because it offers rock-bottom collection fees without investigating further can be costly. You often get what you pay for.

Optimum collection fees.

This is what we believe are the optimum contingency collection fees.

For Consumer Collections ( B2C Collections)

• Over 50% Contingency Fee is unacceptable and too high. Regardless of the returns. Unless the debt is more than 2 years old, it is very hard to collect.
• 50% is slightly on the higher side.
• Between 45% and 50% is considered acceptable.
• Between 35% to 45% is typically considered an optimum contingency rate for a good collection agency.
• Below 35% may be too low unless the balance is over $5,000. Find out more.

Let us dig a little further.

• A 40% contingency rate is optimal if your average balance is between $100 to $1000
• A 35% contingency rate is optimal for balances between $1000 to $5000
• Less than 35%  contingency rate is fine for balances between $5000 to $20000
• The contingency rate will generally be higher for accounts over 1 year old (by about 5-10%). This is because older accounts are hard to collect.

How Performance wins over Fees

Let us do some simple mathematics. Say you have to assign a debt of $10,000 to a Collection Agency. You have two options – “Agency-A” and “Agency-B”

Agency-A
This agency charges a 40% contingency fee and eventually recovers 50% amount (Recovers $5000). This means you are issued a check of $3,000 after 40% fees.

Agency-B
This agency charges a rock bottom 25% contingency fee and recovers 30% amount (Recovers $3000). This means you are issued a check of $2,250 after 25% fees.

Performance wins: Anybody would select Agency-A

Let me repeat

Collection agencies are well aware of the Contingency Fees of their competitors. They are not foolish to keep higher contingency fees than their competitors without a solid reason.

Find it out before you shortlist. I am not saying that all agencies with low contingency fees are bad or under-equipped or vice-versa, but do find out more. Make a mindful selection.

For Commercial Collections: (B2B)
Due to higher balances, contingency fees are between 15% to 35%. A collection agency will give you a quotation depending on the balance, age of the account and complexity of the case. There is no fixed fees.

 

Is your company constantly losing money due to overdue accounts receivable? Several delinquent accounts have remained uncollectable despite your best efforts or even when you followed all your company-recommended procedures and policies.

Did you notice that 90% of the accounts which become over 90 days past due never get resolved?
Unless forwarded to a professional collection company, these accounts are subsequently written off as a complete loss.

Furthermore, chasing customers to clear their bills wastes too much time. This keeps your team members away from the core business responsibilities they were hired for.

Need a collection company with a nationwide presence: Contact Us

Why should your company hire a professional collection agency?

We have prepared a list of “Frequently Asked Questions” that will help you genuinely address your concerns and also help you design a strong case for your company’s senior management.

1. What is the expense involved in hiring a collection agency?

>> None – Accounts can be submitted for contingency collections. Therefore there are no upfront costs. A collection agency returns 60% of the money recovered and keeps 40%.  Many collection agencies offer flat-fee services too, starting at $15 per account.

For commercial collections (B2B), contingency rates are lower. Collection agencies also offer first-party pre-collection services if your staff hardly gets time to follow up on delinquent accounts.

2. Which accounts would you transfer for collections?

>> Only those accounts that have not paid for more than 60 days should be transferred. In other words, you have given them at least two billing cycles to pay directly to you.

3. Any other financial benefit to the company?

>> Many. Almost 90% of these accounts over 90 days past due are written off as a loss. The effort and cost involved in following up offsets the recovery made on them. In short, our company is not gaining anything by following up on accounts over 90 days.

On the other hand, money recovered by a collection agency will be 100% profit for the company.

4. Would you need more people to follow up with a collection agency?

>> Not at all.  Employees will have more time in hand as they won’t have to waste time on these hard-to-collect accounts. Only 1-2 existing employees would spend 15-30 minutes daily submitting past-due accounts on the collections agency website.

In-house employees hate doing debt collections anyway. It will also alleviate the pressures on your billing department. 

5. Why can’t you do the same thing internally?

>> No, you cannot replicate what professional collection agencies can do. Collection agencies have advanced tools that assist in collecting money from hard-to-collect accounts.
They do Skip Tracing to locate missing debtors.
They also perform Bankruptcy checks and several other checks that assist in recovering money.
They do debt collections every day and can handle collections efficiently and effectively.
Collection agencies are also aware of the ever-changing Federal and local laws involved in debt collection.

6. Is there any security risk if you hire a collection agency?

>> Accounts are submitted using a secure website.

The agency will additionally provide security certifications to ensure the data is handled securely. Collection agencies are licensed, bonded, insured, and diplomatically perform collections. This dramatically reduces the company’s own risk against potential lawsuits.

7. 40% contingency fee. Should you look for a cheaper agency?

>> 40% is a reasonable fee in the collections industry. All “good” collection agencies charge between 40%-50%. Moreover, if your average balance is over $1000, the contingency rate can be lowered to around 35%. Hiring a collection agency with better returns is more important than going for the cheapest. Lower-cost agencies do not spend enough time and tools required for higher returns. 

8. How long will it take to set up?

>> Just one business day after the contract with the agency is signed, another 1-2 days to train in-house employees to get used to the process. You will be up and running in less than 3-4 days. 

9. Why should you move fast?

>> The success rate of collecting from older accounts reduces significantly over time. The probability of collecting money falls about 10% every month. By waiting, our company is only losing money.

10. Would it upset our customers?

>> Chances are low. The Fair Debt Collection Practices Act (FDCPA) is the primary federal law that governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from debtors. All collection efforts are made diplomatically with the intent to preserve relationships.

A collection agency will also try to build a positive relationship with your customer, which will help prevent non-payment issues from reoccurring in the future.

11. Why would a client pay a collection agency versus when you ask them to pay you directly?

>> That’s indeed a fact. People are much more fearful/concerned when a collection agency is involved. They know that a collection agency will not back off quickly. For reasons beyond the scope of this article, a simple fact is that people indeed dig their pockets deeper to pay off a collection agency.

12. Which agency should you select? With Local or National presence?

>> The location of a collection agency does not matter, but they should be licensed in your state and where your debtors reside. A collection agency with a nationwide presence should be preferred. If a debtor crosses state lines, you won’t have to look for a new agency to pursue that debt.

13. Do they keep your money collected in a Trust Account:
Always select a collection company that deposits all money collected for creditors in a separate bank Trust Account.

Fill out our “Contact us“, and we will simplify this process.

Conclusion:

Companies do not even realize that they often spend “more money” trying to collect. This is primarily due to the lost time of employees, resources, and many other hidden costs.

If you feel transferring an account to a professional debt collection agency after 60-90 days is cost-effective for your organization, you are 100% right. Collection agencies have been around for decades, and every year they recover billions of dollars for organizations like yours, which cannot collect money from those hard-to-deal-with customers.

It is common for organizations to focus only on getting new customers and mostly ignore their past-due accounts. Engaging an outside organization for debt collection requires approval from upper management, CEO, CFO, or business owner. The concept of transferring accounts to a collection company is prevalent. Even Fortune 500 companies hire a collection agency.