Collection Agency

Discussion in 'Business Operations' started by mikefromny, Jan 22, 2007.

  1. mikefromny

    mikefromny LawnSite Member
    Posts: 224

    anybody ever have to use there to collect as little as a couple hundred bucks ? if so which ones and what is the fee/percentage they take, thanks!
     
  2. toac

    toac LawnSite Senior Member
    Posts: 350

    I've never used one, but I hear good things about olddebts.com
     
  3. Bill S

    Bill S LawnSite Member
    Posts: 184

    I use a company out of PA called JKM credit services. Their rates are competitive and the lady I deal with is very persistant. While I haven't had to use them for a couple years now (thankfully) I wouldn't hesitate to call them in a moments notice. Contact me and I will give you their info.

    Bill
    www.wjsmallwood.com
     
  4. milsaps118

    milsaps118 LawnSite Senior Member
    Posts: 559

    I use a company called Transworld Systems. They are a huge nation wide firm that has one of the highest collection rates. They get paid on a retainer, meaning you pay an up front fee. They have different packages you can buy into depending on the level of service you want. The package I have is 25 collections that are good for 2 years for $495.00. It works out great if you use all your allowable collections. In my case if I use all 25, that equates to $20 per collection. They don't get any other fees besides the initial cost. Check out their website, just search Transworld Systems. Good luck.
     
  5. mikefromny

    mikefromny LawnSite Member
    Posts: 224

    bump...............
     
  6. batdaddy044

    batdaddy044 LawnSite Member
    Posts: 24

    For smaller debts , sometimes it's more economical (and time efficient), to
    simply write them off as "bad debt" , at tax time .
     
  7. group501

    group501 LawnSite Member
    Posts: 173

    American Agencies also does a good job with collections. We have used them for 3 years and are very happy with them. Collections are broken into two phases:

    Phase 1 collections consist of a series of 4 letters mailed with American Agencies collections letterhead. About 80% of the accounts that we submitted to collections are paid after receiving the collections letters. The cost for phase 1 collections is about $10.00 per account and are pre purchased in blocks of (30?). The letters direct the customer to pay you directly.

    Phase 2 collections are enforced after phase 1 has not worked. During phase 2 collections, American Agencies calls the customer and attempts to collect the debt. Phase 2 collections are collected by the collection agency and they subsequently pay you 60% of all revenues that they collect on the debt. If phase 2 fails then a report of the unpaid debt is made to the appropriate credit reporting agencies.

    American Agencies main offices are located in California. Their web site is: www.cachquest.net .
     
  8. group501

    group501 LawnSite Member
    Posts: 173

  9. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    I have a local company that charges me 25%. But they will do what they have to do. This guy will knock on doors to get paid. :)
     
  10. mikefromny

    mikefromny LawnSite Member
    Posts: 224

    anybody use olddebts.com or anyother ones like this?
     

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