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Article Title: Collection Agency - Do You Know How Soon You Need to Hire One?
Author: Daljeet Sidhu
Category: Sales, Small Business, Business
Word Count: 518
Keywords: collection agency,collection service,collection agencies,collection 
services
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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Are you having hard a time collecting unpaid bills from your customers? Do you 
find it difficult to keep track of the payments your clients owe to your 
business? Do you want timely collection of your money? If yes then you need to 
hire a collection agency. Studies have shown that the possibility of collecting 
an unpaid bill drops dramatically within a few months, so it is important to 
act on those delinquent account sooner than later.

All companies at some point face delinquent accounts that need to be collected. 
Often it is easier to hire services of a professional collection agency to 
recover the overdue amounts. Collection agency locates the debtors and collects 
the money on your behalf. Studies have shown that the possibility of collecting 
an unpaid bill drops dramatically within a few months, so it is important to 
hire the collection agency early to improve the chances of successfully 
collecting the money and to recover a substantial portion of your unpaid 
accounts. For example according to a survey by the Commercial Collection Agency 
Section of the Commercial Law League of America, the probability of collecting 
an overdue account drops to 73 percent after just three months, to 57 percent 
after six months, and to only 29 percent after one year.

Using an agency saves you time and money. They are simply more effective than 
you can be in recovering delinquent account. They have trained professionals 
backed by phone systems, computers, and software to make them more effective at 
collections. Downside to using a collection agency is that they charge between 
15 to 50 percent of what they recover. But it is worth every penny. You will 
still end up with more than what you would if you try to collect yourself.

But how do you know it is time to hire a collection agency? There are some tell 
tale signs that your customers are not going to pay you and you may need a 
professional agency to collect the payments.

One of the first signs of a customer unwilling to pay their bills is excessive 
complains that are mostly unwarranted. They will call in repeatedly to customer 
service and find problems, ask for discounts and even ask for free service. 
Some of the other common signs are customers simply denying that they owe you 
money despite concrete evidence. They will frequently ignore collection notices 
or will be unresponsive to your phone calls. As a last resort many of them will 
change their contact details without informing you. Their mail will bounce and 
the phone number on file will show as disconnected.

As a business owner, it is important to read into these signs of trouble and 
take action immediately. Ask your friends and business associates for 
recommendations. You can also find multiple collection agencies at a B2B 
marketplace on the internet or the yellow pages. Call up a few and ask them 
about their mode of operation. It is important to feel comfortable with their 
approach before hiring them. Additionally make sure they are licensed to 
operate in your state and will work within the law to collect your money.

Daljeet Sidhu is Co-founder at http://www.tradeseam.com . Sellers JOIN US for 
sales leads http://www.tradeseam.com/smallbusiness/leads/small-business-leads. 
Collection Agency Price Quotes 
http://www.tradeseam.com/smallbusiness/business-resources/get-free-quotes/966/Collection+Agencies.
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