More companies than ever are enlisting the help of debt recovery agencies. After a year of economic and financial disaster caused by the Covid-19 pandemic business owners are now tasked with recovering some of their losses. Understandably, many people were unable to pay bills they had previously agreed to. Many were simply trying to stay afloat during mass layoffs. However, now the Covid-19 vaccine is being widely distributed and people are returning to work. Soon, people will be better able to pay off their bad debts. Now, is the best time to get started on recovery efforts. People are feeling encouraged by the economic upturn, have access to a consistent income, and debts are still fresh enough that there’s a high likelihood that a professional collections agency will be able to recover the debt.
Avoid Contracts and Flat Fees
Some debt collection agencies charge an initial flat fee early on in the process. It can feel comforting to know how much money you’ll be putting into debt collection efforts right off the bat. However, there is a flaw in this model. You may be on the line for thousands of dollars, and the agency may not even be able to recover the debt. This model is risky and most times infeasible for small, local, and even mid-sized companies. The longer a bad debt persists the less wise it is to hire a collection agency that operates using a flat fee. Accounts more than 180 days past due are much more difficult to collect. You may be out the unpaid balance from the initial debt plus any additional money you spend on debt collection.
SWR uses a “No Collection Fee” model. When you hire a contingency collection agency like Southwest Recovery Service there are no upfront fees. We only get paid if we can collect, and take a percentage of the amount paid by the debtor. Unlike flat-fee agencies you may be able to qualify for a lower rate if you send high volumes of cases to collections. As a contingency agency we are a lot more motivated and persistent. SWR agents will repeatedly contact the debtor, work out a payment plan, and utilize compassionate recovery methods. This is typically much more efficient than sending off a few abrupt collection demand letters that may come off as aggressive and uncouth to your customers– ultimately destroying the relationship.
Southwest Recovery Services
We are a nationally recognized collection agency with 7 locations across Texas, Missouri, and Oklahoma. Our collection agents help companies operating in a wide variety of industries collect outstanding debt ethically and efficiently. We collect on outstanding debts using traditional debt recovery methods like oral and written communication, skip tracing, credit reporting, negotiation strategies, and will even pursue legal action if it becomes necessary. Contact us today to learn more about how our debt recovery services can help your business.