Time is of the Essence in Collecting Missouri Business Debts
The odds of collecting a debt increase dramatically when a Missouri collection attorney begins collection attempts sooner. As more time passes, they are not going to be able to collect as big of a percentage of money from delinquent accounts. This means that collection agencies should strive to collect the money as soon as they take over the accounts.
Debt Collection Percentages Go Down Over Time
If a collection attempts start when a debt is only 3 months old according to some estimates 74 percent of the amount of money that is owed to them can be collected. After an extended period, these numbers decrease dramatically. Most businesses wait twice as long as they should before turning accounts over for collection. For every 30 days, the chances of collecting drop another 12% according to some estimates.
If the debt is allowed to go uncollected for more than a year, the number decreases to about 30 percent.
Do You Really Need a Middleman for Your Debt Collection?
More and more credit managers are recognizing that they no longer need to place their Missouri debt collection cases with collection agencies.
Our debt collection law firm offers the same services as a collection agency. However, while the collection agency cannot take your case to trial, our Missouri debt collection lawyers can if necessary.
If you start off with a collection agency and that agency is unsuccessful and suggests filing a lawsuit, then that collection agency will eventually outsource the debt to an attorney. The end result usually is that your costs go up because now the collection agency has to increase the percentage of the debt they keep so they can compensate the law firm. Note that they still continue to take their fee. For failing.
So effectively, by going this traditional route, you have basically hired a middleman with their associated overhead who really hasn’t brought anything useful to the table.
What The Collection Agencies Don’t Want You To Know
The first dirty little secret is that often these collection cases are bid to the cheapest lawyer. You may be saying, “But isn’t that a good thing? Doesn’t it save my company money?” Unfortunately, no. Your fee will be the same regardless of what the agency negotiates with their hand-picked “whoever will do it the cheapest” lawyers.
The second dirty little secret is many of these high volume “dirt cheap” collection lawyers that the collection agencies hire don’t actually try your case themselves either. Instead, they in turn further bid out the work, including the trial itself for your debt to the lowest better, often as low as $45 to try your case, to whatever lawyer who doesn’t have anything better to do with their time than wait around all afternoon at the courthouse to try your case.
This lawyer will get his or her $45 regardless of whether you win/lose/get paid a dime. Is that the type of incentive you want for someone trying to collect your money?
You Do Have A Choice For The Best Way To Collect Your Debt
Cut out the middleman and take control of your claims. Choose your own Missouri debt collection law firm for your more valuable cases. Jason Krebs and The Krebs Law Firm LLC have handled thousands of collection matters for some of the biggest companies in Springfield and the United States.
Debt collection agencies do have their place for smaller, high-volume claims. But once you get into the thousands of dollars on a commercial debt, then you owe it to yourself and your business to go straight to a debt collection lawyer and cut out the middleman. Save time, collect more money and get the best person for the job, not the lowest bidder.