Small businesses are often the ones that suffer the most at the hands of debtors. Unfortunately, they are also the ones who tend to not hire collection agencies to try and recover their bad debts.
A lot of the time, they think their business is too small to warrant working with a collection agency...even though, in reality, there’s really no such thing as being too small to recover debts owed.
Other times, they don’t realize how affordably priced many collection agencies can actually be. They wrongly think they’d never have the budget to cover collections, when in truth, the right collections agency could actually help to double their budget!
The trick to finding the right collection agency for a small business is to find one that is willing to work with small debts. Many collection agencies will actually go after any debt of $1000 or more; some will even work with smaller debts. You just have to find the ones that are marketed toward and willing to help small businesses.
After you’ve found a collection agency that is willing to work with you, just make sure it’s adamant about abiding by all debt collection laws, such as not calling debtors too often or at the wrong times. The last thing a small business wants to deal with is a lawsuit because its collection agency disobeyed the law.
You can greatly reduce the risk of legal trouble by choosing to work with a debt collection agency that belongs to the International Association of Commercial Collectors or the American Collector’s Association, both of which have strict standards for membership and ensure that all member companies obey laws and regulations.