3 Crucial Questions to Ask Yourself When Choosing the Best Collection Company or Collection Agency

Okay students, there is a lot to discuss so lets cut to it. First off you need to take a look at your particular collection account so that you may better recognize the position your in and make a more educated decision on the path to take. Here are the main points of interest.

1. How much does my debtor owe me?
If your debtor owes $600.00 I’m willing to bet your not going to be happy paying the going collection attorney rates to retrieve it.

The best collection company for you in this case would be one that works on a % basis. This will save you considerable money over signing some contract with a collection agency that wants a few hundred down just to attempt to collect your debt.

2. How long have I done business with my debtor?
We all know that an attorney is not the most friendly person to talk to. If you want to attempt to mend your ties and continue business with a debtor it is a very good idea to consider a low friction collection agency. The best collection company for you in this case would be one that will call and chat with your debtor and sort of “hold hands” until they can get this worked out. Usually an agency that is willing to do that is more expensive than one that wants to slap a remark on there credit and fry them for dinner.

3. How far past due is the account?
If the account is more than about 5 or 6 months behind you may have already waited too long to collect on it. A good rule of thumb is turn over ANY and ALL accounts at 60-90 days. You will receive a better rate from the agency or attorney you choose and have many more options.Not to mention your collect ability at 30 days is 84% and it drops 10% every month! If the account is behind up to 1 year I would suggest you find the best collection company in your field. If it is over 1 year, its time for litigation! Go with a collection attorney instead because you’re chance of collecting without litigation is around 21%.

HOW DO I CHOOSE THE BEST COLLECTION COMPANY?
First off you should never, I REPEAT NEVER, sign a contract with a collection agency. That is insurance that the agency does NOT have to try to earn your business for the next 1 or 2 years. Many collection companies will only send out the collection letters and hope it is paid when they don’t have a time constraint.

Find a collection agency that has NO CONTRACT

Attorneys will pretty much always want the accounts on contract, so expect that.

What is the going rate for a collection agency?
As of today’s market the standard rate for a collection agency is 15%-35%. I would suggest finding the middle of the range, around 25%. A company with a lower rate is usually an overseas based firm with VERY LOW results. Higher rates are just greedy companies.

What is the going collection attorney rates?
You can expect to pay from 30%-50% for a collection attorney. I know this is a harsh pill to swallow but thank about this for a moment. If you lost $100 and while looking for it found $50 would you be happy you got back some cash or just leave that $50 dollar bill on the ground?

Thank you for taking a moment out of your busy schedule to review our material and hopefully our company. You can find more info about collection agencies as well as our company at

Okay students, there is a lot to discuss so lets cut to it. First off you need to take a look at your particular collection account so that you may better recognize the position your in and make a more educated decision on the path to take. Here are the main points of interest.

1. How much does my debtor owe me?
If your debtor owes $600.00 I’m willing to bet your not going to be happy paying the going collection attorney rates to retrieve it.

The best collection company for you in this case would be one that works on a % basis. This will save you considerable money over signing some contract with a collection agency that wants a few hundred down just to attempt to collect your debt.

2. How long have I done business with my debtor?
We all know that an attorney is not the most friendly person to talk to. If you want to attempt to mend your ties and continue business with a debtor it is a very good idea to consider a low friction collection agency. The best collection company for you in this case would be one that will call and chat with your debtor and sort of “hold hands” until they can get this worked out. Usually an agency that is willing to do that is more expensive than one that wants to slap a remark on there credit and fry them for dinner.

3. How far past due is the account?
If the account is more than about 5 or 6 months behind you may have already waited too long to collect on it. A good rule of thumb is turn over ANY and ALL accounts at 60-90 days. You will receive a better rate from the agency or attorney you choose and have many more options.Not to mention your collect ability at 30 days is 84% and it drops 10% every month! If the account is behind up to 1 year I would suggest you find the best collection company in your field. If it is over 1 year, its time for litigation! Go with a collection attorney instead because you’re chance of collecting without litigation is around 21%.

HOW DO I CHOOSE THE BEST COLLECTION COMPANY?
First off you should never, I REPEAT NEVER, sign a contract with a collection agency. That is insurance that the agency does NOT have to try to earn your business for the next 1 or 2 years. Many collection companies will only send out the collection letters and hope it is paid when they don’t have a time constraint.

Find a collection agency that has NO CONTRACT

Attorneys will pretty much always want the accounts on contract, so expect that.

What is the going rate for a collection agency?
As of today’s market the standard rate for a collection agency is 15%-35%. I would suggest finding the middle of the range, around 25%. A company with a lower rate is usually an overseas based firm with VERY LOW results. Higher rates are just greedy companies.

What is the going collection attorney rates?
You can expect to pay from 30%-50% for a collection attorney. I know this is a harsh pill to swallow but thank about this for a moment. If you lost $100 and while looking for it found $50 would you be happy you got back some cash or just leave that $50 dollar bill on the ground?

Thank you for taking a moment out of your busy schedule to review our material and hopefully our company. You can find more info about collection agencies as well as our company at Eastpoint Recovery Group.