The perfect solution to your cash-flow issues may not exist. Commercial lien and debt collection services can be a double-edged sword. While they can help you get the most out of your money, they can also bring negative consequences. By hiring a commercial collections agency Boca Raton FL, you trust that they will manage your money responsibly and follow all your financial and legal guidelines.
Pros of Hiring a Commercial Collection Agency
They can Help You Recover a Debt
Commercial collections agency Boca Raton FL specializes in recovering money owed to businesses. They will work with you to create a plan to recoup your money. This may involve sending letters or making phone calls on your behalf. In some cases, they may even take legal action.
They Have Experience Handling Debt
Commercial collections agencies FL has experience dealing with delinquent accounts and know how to get results. Thomas J. Maccari, P.A. use various methods to collect payments and are familiar with the laws and regulations surrounding collections. In addition, commercial collections agencies Boca Raton FL have the resources, and they’re experts at negotiating payment plans and settlements.
They Take Security Measures
Commercial collections company Boca Raton FL take security measures to protect consumers by ensuring that unauthorized individuals do not access their personal information. Commercial debt collection services in Boca Raton use physical, electronic, and procedural safeguards to secure data. Physical safeguards include using lock and critical protections, restricting physical access to offices, and monitoring via closed circuit television. Electronic safeguards include password protection, firewalls, and data encryption. Procedural safeguards include employee training on information security and implementing access control procedures.
They can Help Save Time
Commercial collections company Boca Raton FL will manage the process of collections for you, including setting up payment plans, contacting the debtor, and handling any legal proceedings. This can create more time to focus on other essential tasks and give you peace of mind since professionals are handling the process.
Cons of Hiring a Commercial Collection Agency
The commercial collection process can be long and arduous, often taking months or even years to resolve. The first thing is to send a demand letter demanding payment within a specific timeframe. If the client does not respond or pay within that timeframe, the next step is to file a lawsuit.
No Guarantee You’ll Receive the Money Owed
There is always the likelihood that a debtor will file for bankruptcy when using a commercial collection agency, which would absolve them of their responsibility to pay you back. In some cases, this may be the best course of action for the debtor, but it can leave you in a difficult position.
It can be Expensive
Commercial debt collection services Boca Raton typically charge a fee for their services, typically a percentage of the amount owed. As a result, businesses may not receive the total amount of the outstanding invoice when using a collection agency. This can be incredibly frustrating if the debt is large or the company has already attempted to collect the debt on its own.
The Process Can Damage the Borrower’s Credit Score
Commercial collection agencies in FL will likely report the debt to the credit bureau, damaging the borrower’s credit score. Immediately an account is turned over to a collection agency, it will probably show up on your credit report, which can seriously impact the borrower’s credit score, making it more challenging to have new lines of credit in the future. In some cases, it may even result in higher interest rates.
It can be highly frustrating when a company cannot collect payment on a past due account. However, trying to collect the debt yourself can be time-consuming and may not be successful. Schedule a consultation with us today to get our debt collection services.