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collection agencies

Discussion in 'Business Operations' started by bobbygedd, Jan 28, 2006.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    anyone use a collection agency? i've spoken with 2 recently. one wants $10 a month flat fee, and will collect on up to 21 bad debts a year, with no commisions. this service also claims if they get no response after 60 days worth of collection attempts, they will mark up the clients credit report. another service wants 25% of all recovered bad debts. no pay if no recovery. i am no longer interested in personally persuing owed money. it's stressful, agrivating, time consuming, and i found out, the way i've been doing it, i've broken so many laws, i'm lucky i got away with it. i may be putting down the shovel. anyone use them? is it worthwhile? what is the success ratio? my way, it's 100%. but, i'm tired of it
  2. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    Mr. Roberto, based on how many accounts you will have to place in collection will make your decision. I've never heard of charging by a monthly fee, usually everyone is % based. Either way you will find that even after paying the %, it still works out to be cheaper than your time spent persuing the money yourself. Also if they can't collect, you don't get charged. payup
  3. Markf

    Markf LawnSite Senior Member
    Messages: 406

    I did a search and www.olddebts.com seems to be popular with the members. We are about to try it ourselves. Did they become a sponsor?
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    do you use one? also, my time collecting, doesn't cost me anything. i'm just very tired of the stress involved. i take it too personal. i'd rather just not even have to deal with it. one day late, i'll make a phonecall, and cancel service. if they pay up, within 30 days, i'll resume service. if not, 30 days later, they are sent to collections. i don't need the headaches
  5. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Messages: 946

    I have not used any agencies yet, but I am planning on make olddebts apart of my collection process in 06'.
  6. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Smart move bg...use your time more wisely to market and grow your business. Let the collection agencies go after the few deadbeats you might have. So is the shovel gonna get mounted over the mantel in the living room or auctioned off on eBay lol?

    Give me a shout next week.
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    ok, next week. as far as the shovel, i still may need it, but not for collecting anymore
  8. mmacsek

    mmacsek LawnSite Senior Member
    Messages: 545

    BG, Will you be using a local agency or a national one? Thanks Matt
  9. Richard Martin

    Richard Martin LawnSite Fanatic
    Messages: 14,699

    Yep, olddebts.com is my recommended collection agency.
  10. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    Yes I do, I actually have a PI that I use as well as an agency. The scond part is where you are wrong. Count up the hours you spend on chasing money, plus phone calls, stationary, postage, late fees, etc. and you will see how much it is REALLY costing your company. As a business owner, your time is always worth something. :)

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