To keep any commercial organization afloat, it is crucial to collect orderly payments for all the services and products rendered. However, not all customers make their payment on time. Hence, the entrepreneurs or their staff members have to keep making collection calls to these clients in order to collect delinquent debts. In many cases, customers may not even pay off their debt in full even after repeated collection calls and letters. To avoid such an eventuality, it is better than entrepreneurs hire professional debt collection agencies like Brennan and Clark.
Hiring a professional collection agency can significantly increase the odds of acquiring debt payments in full for the entrepreneurs. Collection agencies like Brennan and Clark are staffed with trained agents who are well-versed with the techniques of making effective collection calls and coercing debtors to make payment as soon as possible.
Many collection agencies even have the capability to report unpaid debts to diverse credit bureaus, and they make the defaulting customers aware of the same. Most debtors try to make pay off their owed amount soon after hearing this, so as to maintain their credit scores.
There are multiple advantages of hiring the services of a well-established collection agency like Brennan and Clark for debt collection. Here are a few of them:
- Custom services: The needs of each business differ when it comes to recovering an unpaid debt. The experienced agents belonging to collection agencies ideally design debt collection programs that would perfectly gel with their clients’ business model. While some of these agencies receive a commission on the sum collected by them, others pursue debtors for a flat fee.
- Legal protection: There are multiple state and federal laws that govern the debt collection domain. Many customers try their best to take advantage of these regulations to delay debt payments, and may even sue the companies if their rights are violated. Any entrepreneur engaging in debt collection without a thorough knowledge of these laws may find themselves in a lot of problems. Agents of professional debt collection agencies are, however, well versed with all the federal and state collection laws. Hence, they can competently recover unpaid debts from customers, while steering away from any legal risks involved.
- Documentation: Most collection agencies maintain records of any type of communication made with the debtors. Hence, if the entrepreneurs decide to sue a debtor in the future, this documentation can easily be presented in court. Moreover, if the entrepreneurs opt to claim a bad debt as a tax deduction, then they shall need to show such records in their tax files. In the scenario of an audit, the IRS would want to see that the entrepreneurs have exhausted all the options possible, prior to writing off a debt and making a deduction claim for it.
Collection agencies like Brennan and Clark provide a host of solutions that are focused on eliminating the credit losses of their clients.