If you are a landlord looking to collect $1,000 form a tenant, hire the collection agency. Most work on volume, work on fear, and keep 50% of the take. Simple enough. But if you are a business looking to collect a pretty substantial sum (say, $10,000 or more), why would you pay someone 50% to harass someone with dumb 10 second phone calls with no intention to file suit? Most won’t pay. THAT is the difference. When I am hired to collect, I send one letter. “My client has tried repeatedly to work with you and you’ve ignored them. Pay the full amount or get sued in 14 days. Period.” No harassing phone calls, no dirty tactics. That’s the reputation you want (Walmart has it). “We will work with you, just don’t mess with us or jerk us around.” And 50%? Good rate of return, but on true business cases, that’s a ridiculous fee. A demand letter, filing suit to show you are serious, and negotiation may cost $2,000 on a $10,000 collection, a savings of $3,000. And you’ve made a name for yourself while saving that cash. You’ve said you want to do business with others, but don’t take advantage.
Better and cheaper results while building your reputation. That’s how we roll…
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