Reasons for Hiring Debt Collection Agencies over Commercial Law Firms
March 20, 2017 |
If you own a business house, then I am sure that you have a very tight schedule on a regular basis. The amount of responsibilities an owner has to shoulder, irrespective of the size of the firm, goes without saying. One of the major tasks includes following up with the debtors and getting the dues back on time. But most of the companies face this issue from stubborn customers, who are unwilling to pay in spite of continuous reminders, invoices, emails and phone calls. And that is why third parties like commercial law firms and debt collection agencies have come into the scenario. These are two kinds of professional bodies that you can hire for taking care of this sector of your business.
If you are wondering which one would be the best solution for this, I would definitely suggest you hire debt collection agencies. Wondering why? Well, I have jotted down a few points which you require to go through, before hiring any professional help. Take a look at the following reasons.
Balance size – While most of the law firms check your balance size (size of the accounts recovered) and do not accept if it is under $1000, this is not the case with debt collection agencies Houston. They accept very small balance sizes as well. So, if you have numerous accounts which are comparatively smaller in size, you must definitely opt for agencies over law firms.
Fee structure – The best part about these debt collection agencies is that they accept the payments on a contingency basis and according to the response they get for their efforts. That is you do not require paying until and unless your account is recovered. They generally charge a fixed percentage of the amount that you will get back from your customers. But law firms have a fixed fee structure which you have to pay, irrespective of the efforts and success level.
Speed – One of the primary factors that bother any creditor is the speed of the debt recovery. As we all know, law firms use strict norms in order to get the dues back, which includes the court of law. And hence, recoveries get delayed. Whereas, in case of a Houston debt collection agency, the process is much quicker as it does not involve legal procedures. They use various modern day software and methodologies, which make the debtors pay faster.
Methods – It is always recommended to behave politely with your debtors so that the reputation of your firm is not hampered as well as it does not ruin the prospect of any future business deal with that particular customer. Also, a customer can file a lawsuit against you, if any kinds of over-aggressive methods are used against them. While law firms use strict and aggressive methods for getting the dues, agencies don’t. And that is why I always suggest you to hire agencies over law firms.
So, now you know the reasons behind hiring commercial agencies over law collection firms. Don’t delay anymore and search online for a successful and renowned business collection agency.
Dale Nelson - About the Author :
Richard Gomes is a law intern and here, he writes the reasons for choosing debt collection agencies over law firms. Read his articles to know about the benefits of debt collection agencies Houston and advantages of Houston debt collection agency.
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