Things to Know About Collections Company For Small Business
What are Debt Collection Agencies?
One of the biggest failing points for small businesses is unpaid debts. With a little courage and the right collections company by your side, you can claim what’s owed. Don’t allow debtors to ruin your cash flow. Hiring a collections agency for small business debt doesn’t have to be expensive or painful.
At the Collection Bureau of America, we’ve been collecting debts on behalf of small businesses since 1959. We are licensed to collect across all 50 states, which means there are no geographical restrictions on collecting a debt.
A collections company for small business specializes in making sure debts are paid. Small portions of the debt are taken in the form of a fee. It is that simple. But what are your main considerations when choosing the best collection agency for small business?
- Affordability – You need to make sure you’re paying a fair price for collections services.
- Success – Hire a small debt collection agency that has a high success rate of recovering debts.
- Ethical – At the Collection Bureau of America, we understand that business owners want their debts collected in an empathetic and ethical manner.
With so many different debt collectors offering their services both online and offline, you need to know that you’re hiring the right bureau and ensuring that debts are collected lawfully. Reputation is everything in business, and no entrepreneur wants to deal with the fallout from dealing with an expensive, unethical agency.
Hire the Collection Bureau of America, and you get all of the above and more. We are not just debt collectors. We are businesspeople. Contact the best in collections now by sending a message to the Collection Bureau of America, and let’s get started.
How Small Business Debts are Collected
Most small business owners want to know more about how the industry collects small business debts. While every agency will have its approach to debt collection, we believe in transparency. This is why we have detailed the process we use to handle our small business clients. It’s the industry benchmark and one of the reasons why businesses have trusted us for more than 60 years.
Step One – Get in touch with our team and tell us about a debtor. Our team will consult with you to ascertain the circumstances surrounding the debt so we can come up with a strategy that suits you and the debtor.
Step Two – After using a combination of letters, phone calls, and emails, we will liaise with both you and the debtor to come to a suitable arrangement. This could include debtor monitoring, payment plans, or formal legal action.
Step Three – The next step is to consult and connect with the debtor’s liquidators. We fight in your corner to ensure we collect as much of the outstanding amount as possible. Also, we keep you in the loop by updating you whenever a new development occurs.
Step Four – Once we have collected the money, whether in stages or in full, we credit your account directly with the money owed to you, minus our fee.
We always stick to industry best practices and guidelines to ensure that not only do we collect your debt, but we do it in a way that’s both legal and ethical. Of course, we employ a wide range of strategies to track down debtors and encourage them to pay. Collections for small businesses are about working together with both the business and the debtor to ensure the client pays and the business gets paid.
For a collections agency that specializes in successful outcomes, look no further than the Collection Bureau of America.
Services of a Collection Agency for Small Business
Whenever you enlist a collection company for small business debt, there are several services you can choose from. When you hire a debt collector, you not only get to decide who to hire but how you want your money to be collected. Let’s look at some of the main services we offer here at the Collection Bureau of America.
First-Party Debt Recovery Programs
Not every entrepreneur wants to reveal that they’ve handed over responsibility for debt collection to a professional collection bureau. We understand that, which is why we offer first-party debt recovery programs. We act in your name to recover your debts by communicating as an arm of your company. That means we use your company letterheads, phone numbers, and envelopes to get nonpayers to pay what they owe.
If you value discretion above all else, first-party debt recovery services are designed for you. It’s the ideal debt recovery program for newly delinquent accounts that aren’t ready to escalate to more formal debt collection action.
Third-Party Debt Collections
For more traditional collection services, we recommend third-party debt collections. These services are ideal when you have already tried every avenue to communicate with your debtors. As a creditor, it’s difficult to recover the amount owed if you can’t engage with a nonpaying client.
The Collection Bureau of America uses our experience and reputation to reach out to your debtors and to work out a plan so that you never miss out on another invoice. We collect debts through a selection of tailored strategies, including:
- Payment in full
- Payment plans
- Resolution of disputes
Any good small debt collection agency customizes each account to the needs of the client. The client who has stopped responding needs a different collections strategy than the client who is engaging but trying to put off paying. Our experienced debt collectors evaluate each account separately to increase the chances of recovering your money.
Accelerated Third-Party Debt Recovery
We understand how crippling an outstanding debt can be for a small business’s cash flow. Collection companies for small businesses often provide accelerated recovery services, and we’re no exception.
If you need an outstanding invoice paid yesterday, this is the service for you. Leveraging the devastating combination of the most experienced debt collectors in the industry and the latest technology, we work every hour of every day to recover your debt.
Account Billing and Invoice Services
Why take away valuable resources from your small business when you can hire a collections company to handle everything on your behalf?
Take advantage of our account billing and invoicing services. We take your itemized charges and generate bill copies and invoices on your behalf. If the client doesn’t pay, we can easily escalate the account to one of our debt collection services. Alternatively, for the most difficult cases, we can support your business in taking formal legal action.
For a collection agency for small businesses that goes the extra mile, you’ve found your answer with the Collection Bureau of America.
How Much Do Debt Collection Agencies Cost?
Not every company has the financial resources to invest significant amounts into debt collection. Since many small businesses are invoicing relatively small amounts, it may not be worth hiring a professional to recover the debt. Some unscrupulous people are perfectly aware of this, which is why they often refuse to pay outstanding invoices from small businesses.
So, how much does it cost to hire the best debt collection agency?
Not as much as you think. There are two main fee structures debt collectors typically use, known as contingency fees and fixed fees. At the Collection Bureau of America, we use both fee structures, depending on the size and age of your debt. Call us to discuss the right pricing structure for you.
Contingency Fees for Small Business Debts
The most common fee structure used by any collections company for small business is the contingency fee. Essentially, this is a commission-based structure. We charge a percentage of the collected debt. Depending on the size and age of the outstanding debt, the amount is up for negotiation. This is the best option for most small business owners because there are no upfront payments required. You don’t need to invest any of your resources into collecting your debts.
Pay special attention to the return rate. Higher contingency fee rates are often worth it if your agency has a high success rate in recovering outstanding amounts. Contact the team to discuss how much it costs to recover a debt with the Collection Bureau of America.
Fixed Fees for Small Business Debt Collection
Less common but still available are fixed fees. In this scenario, you pay an upfront fee for the collection of the debt. However, you always get to keep 100% of the debt collected. There are no contingency fees.
If your debt is less than 90 days old, we highly recommend opting for the fixed fee structure. Remember, debts that are younger than 90 days old are considered to be in the pre-collection phase and, therefore, are statistically easier to collect. For small businesses struggling with newly delinquent accounts, this is the best value collection service.
How to Choose a Debt Collection Agency for Small Business
Small business owners often struggle to choose the right collections agency for small business debt recovery because there are so many options. There are several factors to take into account when searching for the best debt collection agency. Let’s examine some of the aspects you should take under consideration before hiring a small business debt collector.
Ask for Referrals
Ask a friend, a trusted business associate, or read through some of the success stories on websites to get referrals. Nothing is more powerful than a recommendation from someone you trust. Never allow the debt collection agency to tell you how great they are — find out for yourself.
It’s also worth calling up an agency and asking for the details of some of their former clients.
Do Your Research
We cannot emphasize this enough. Do your research. A flashy website doesn’t mean a small debt collection agency offers an effective service. Weigh up the options and question whether they look credible. If they look new or you’ve never heard of them, would you trust them with your collections?
Ask the agency about its pricing structures. How transparent are they about the fees they charge, and when do they charge? Compare prices with other agencies locally and nationally to make sure you’re getting the best deal. This is why at the Collection Bureau of America, we encourage our prospective clients to shop around before making a decision.
Do they follow the practices of the Fair Debt Collections Practices Act? Are they ethical and empathetic in the way they approach debt recovery? Can you log in to an online portal and track the progress of your account?
These are some of the questions you need to ask. We understand that the collections industry hasn’t always had the best reputation. We believe it is our moral duty to change that by being as open and as transparent as possible about how we collect our debts and how we adhere to the rules and regulations at both Federal and state levels.
Size Doesn’t Matter
The size of any collections company for small businesses is completely irrelevant. Large, national firms are not necessarily better than small, local ones. Your needs, the unique strengths of the agency, its reputation, and its collection success rate are far more important. Resist the urge to give your business to the biggest agency you can find.
Search for Accreditations
Finally, make sure your agency displays its accreditations. Anyone can set up a website and go into business for themselves. Look for accreditations from the Credit Services Association and the Financial Conduct Authority as a minimum. It’s also worth looking out for additional accreditations the agency has won, such as from the Better Business Bureau and the Association of Credit and Collections Professionals.
The Best Debt Collection Agencies for Small Business
We encourage our clients to compare different collection agencies before outsourcing the collections process for their delinquent accounts. Let’s take a look at some examples of the best collection agency for small business debt recovery services.
1. The Collection Bureau of America
We specialize in both B2C and B2B debt collection services. Whether you’re a small business or a big business, we have the resources to collect debts regardless of where your client happens to be. Our strategies are tailored according to the account. Every account is individually assessed and discussed to determine the right strategy and fee structure for you. With a commitment to excellent customer service and ethical debt collection practices, the Collection Bureau of America has been supporting business owners for more than 60 years.
2. The Kaplan Group
This international debt collector specializes in not only collecting debts, but applying legal pressure to nonpaying clients at no extra cost. With no upfront costs and low fees on big debt balances, this is the ideal collection agency if you have a big outstanding invoice. They command high 85% success rates on their collection services. However, be aware that they charge larger fees for first-time clients. For smaller amounts, Kaplan may not be worth it.
3. Prestige Services
Our top pick for international B2B debt collection services is Prestige. These commercial collection services cover the entirety of North America. To collect, they employ skip tracing to ensure clients cannot simply move to get out of their obligations. Their professional debt collectors regularly inspect and investigate businesses that refuse to pay. Even if the debt is not collected, Prestige Services can hand over debts to local attorneys for further legal action.
4. Rocket Receivables
If you want a collection company for small businesses and midsize businesses, Rocket Receivables are the specialists you need. This debt collection agency focuses mainly on education, healthcare, residential, commercial, and general retail. What we love about Rocket Receivables is they keep matters simple, with fixed fees for newly delinquent client accounts and contingency pricing for older debts.
5. Summit Account Resolution
This agency is an excellent collections company for small businesses because they specialize in them. Whether you need consumer or commercial collections, Summit Account Resolution can handle it. With skip tracing and litigation services, they have several powerful tools in their arsenal to ensure your money is paid. After signing up with Summit Account Resolution, you’ll gain access to an online portal and a dedicated account manager to keep you updated on the progress of your collections.
Small Business Collections: The Professional Agency You Need
We understand the financial difficulties imposed on businesses when clients fail to pay on time and in full. When you hire the Collection Bureau of America to handle your small business collections, you’re hiring the gold standard of collections. We believe in honesty, transparency and hard work with a proven history of success in serving small businesses.
Our best small business profile presents more than 1000 collection opportunities alone. We take pride in our high success rates and the affordable fees we charge. If you want to work with a nationwide debt collection agency that uses advanced resources to track down debtors and make them pay, contact the Collection Bureau of America now.