Collection Agencies Have Limitations
For most small businesses, having to engage in collecting past due accounts becomes frustrating. For small business owners, cash flow is crucial to keeping the lights on and the business up and running. Having to take the time and resources to attempt to collect past due accounts internally takes away from the time the business should be focusing on their core business. There are agencies that specialize in debt collection for small businesses that they should consider. But, perhaps a better alternative is utilizing debt collection law firms who focus their practice on representing business that are owed money. We have talked in past blogs about the limitations of using a collection agency to collect your company’s money.
Collection Agencies Are Not Licensed to Practice Debt Collection Law
A collection agency cannot hold themselves out as a debt collection law firm nor can they legally practice debt collection law. Collection agencies send a series of collection letters and then attempt to collect past due accounts by making debt collection telephone calls demanding payment. Collection agencies also typically will charge a contingent collection fee between 25% to 40%. If a lawsuit is required to sue a debtor for your money, the agencies typically will raise the contingent fee even higher.
Debt Recovery Law Firm
Alternative to Collection Agencies
Our commercial debt collection law firm has designed a new program to offer credit managers and small business owners an alternative to paying a collection agency high contingent collection fees. We have established www.AttorneyDemandLetters.com . With this unique debt collection service, a flat fee is offered. We will send out an attorney demand letter for payment of your money and also offer an option for attorney demand telephone calls. The concept is to “Put the Power of an Attorney Behind Your Demand for Payment.” It is clear that when your customer sees demand for payment coming from a debt collection law firm rather than a collection agency, your customer will now that their time to contact your company to make payment arrangements is running short.
Please visit our website for further information on how you can use the power of a debt collection attorney to help you recover your money. We will show you why it may no longer be necessary to consider using commercial collection agencies to collect past due accounts.
Collection Agency Litigation Departments Forward Claims from their Collection Agencies
A collection agency is not licensed to practice debt collection law. Collection agencies set up departments in their collection agency to forward accounts for collection of past due account receivables to commercial collection attorneys. Our debt collection firm has established a division that gives credit managers the opportunity to forego using a collection agency and send their accounts for collection directly to our commercial debt collection law firm.
Debt Collection Law Firm
AttorneyDemandLetters.com May Save You Money When You Use An Attorney Debt Collection Service Instead of a Commercial Collection Agency
AttorneyDemandLetters.com was established to offer credit managers a low cost solution to paying high collection agency contingent fees. Just like collection agencies our collection lawyers will draft a demand letter for payment. In addition, we offer an attorney telephone demand service to let your customers know that your company is serious about collection past due accounts that are due. Collection agencies typicaly charge between thirty – forty percentage contingency fees. With our flat fee service, you may save thousands of dollars using this debt collection service instead of utilizing a collection agency.
Collection Agencies May Not Be As Effective
Once your customer sees that you have retained a law firm to assist your company collect past due debt, the debtor will know that if arrangements are not made with your company for payment, litigation may be imminent. Today, most debtors recognize that a collection agency cannot bring suit. Collection agencies rely on commercial collection attorneys to bring suit on behalf of their collection agency clients. The collection agency in effect is acting as a middleman. As a result, you end up paying a higher contingent fee. By cutting out the collection agency you are eliminating the middle man and will save on contingency fees.
Collection Agency Collection Attorney Software
Whether you are a collection agency or a collection attorney in order to properly manage your work flow in a debt collection setting it is important to have debt collection software. Collection agencies and commercial collection law firms typically have a high volume of debt collection files. To manage these files without the assistance of a debt collection software program would almost be unheard of in the debt collection industry.
Our commercial collection law firm uses a web based software called Casetracker. Casetracker software allows our debt collection professionals track thousands of commercial debt collection cases. Because it is web based it allows not only our commercial debt recovery staff but also our commercial debt collection clients to log in from anywhere there is a web browser, including smart phones, to gain access to their files.
Collection Agencies and Collection Attorneys Use Debt Collection Software
Casetracker has different modules in place to help manage the work flow. Our debt collectors have a different module from our customer service representatives. Each collection file maintains a separate accounting section so that when funds are collected from debtors, clients are easily able to track the amount collected, the contingent collection fee that our collection lawyers will retain and then the net proceeds of the collection that will be remitted back to the client.
Collection Law Firm
Our commercial debt collection law firm was first introduced to Casetracker by a Florida commercial collection agency that had been using the software for several years. Collection agencies have some different needs when it comes to debt collection software but, the similarities between what a commercial collection law firm and a commercial collection agency do are not that different. Casetracker was able to customize our debt collection software to our needs as we did not need some of the features that a commercial collection agency would utilize.
We are a commercial collection law firm based in Boca Raton, Florida. We would be happy to share our experience using Casetracker over the years in our office. We welcome commercial debt collection claims directly from creditors and from collection agencies from all over the United States.