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Commercial Collections

About Commercial Collection Agencies

You should be very selective when choosing a commercial collections agency to collect your commercial debt. Selecting a commercial collection agency based upon the lowest fee charged may not be the best choice. No matter which commercial collection agency you choose, they will impact your business reputation - for better or for worse.

Make sure the commercial collection agency has the skills, knowledge and experience with commercial debt collection and your particular type of debt. It is important for your commercial collection agency to understand commercial collections.

While price is always a factor in making any business decision, it should not be the only significant factor, particularly where other important factors need also be evaluated. Most of us are familiar with the old adage; "You get what you pay for." Lower commercial debt collection fees often result in a collection agency scaling back its collections efforts. Commercial collection agencies are a business and need to have a reasonable profit margin like any other business. Lower fees often means that the commercial collections agency will cut back on its collections efforts to reduce expenses and earn a profit.

Discuss commercial debt collection recovery rates and fees. Instead of a low collection fee rate a creditor should focus on a metric called "net back." Net back means the amount of money returned to a company from accounts placed for commercial debt collection after the agency has been paid its fee. This is cash that the company can use in its business. This is how you should be evaluating a collection agency.

Part 2 of 'How To Choose A Commercial Debt Collection Agency'

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