Collection agencies help business owners recover outstanding debt, taking a percentage of what is recouped.
As a business owner, look for a collection agency that charges a fair rate, has a documented high success rate in collecting debt, and does so in an ethical and empathetic manner.
We researched more than 30 collection agencies before arriving at four best picks.
This article is for business owners who need the help of a collection agency to recoup past-due funds and want to know which one is best for their needs.
Small business owners have a lot to worry about. Getting customers to pay is among the big ones. That's where a collection agency comes in. When searching for one, you need to consider the rates they charge, their ability to recover unpaid bills, the services they offer and the approach the collection agency takes. We did the work for you, comparing more than 30 collection agencies. Here are our picks of the best collection agency services for small businesses.
Summit Account Resolution's transparent pricing, low minimum collection balance requirement and variety of service options make it our choice as the best collection agency for small businesses. Summit collects both commercial and consumer debt across the U.S., serving many different industries.
It has some of the lowest rates in the industry, charging as little as 7% for certain first-party collection programs to as much as 50% if it's a consumer collection account. Rates are negotiable. There aren't any upfront fees, nor additional charges for older accounts. The company's pricing is set on a contingency basis. If Summit AR doesn't collect any money, you don't have to pay. To recover debt, it employs several tactics, including skip tracing and litigation services.
Summit AR serves both consumer and commercial customers, and has experience collecting debt from a range of debtors. It employs ethical and empathetic tactics, and strives to treat debtors with dignity and respect. Summit AR's debt recovery rate is 34.8%, but according to the company, there are some cases in which that rate is 80%.
When you become a client of Summit AR, you get access to an account manager. You also get to use an online portal, enabling you to add new accounts and monitor existing ones whether its 12:00 p.m. or 12:00 a.m.
Prestige Services Inc. (PSI) is our choice for the best B2B collection agency because of its broad array of collection services, transparent pricing and strong customer service.
PSI's rates are lower than competing services and are negotiable on a case-by-case basis. Volume discounts are also available. PSI pricing is contingency-based, which means you don't pay when it fails to recover the debt.
The agency's recovery rate is 38% (based on actual amounts collected), which exceeds the industry average of 20-25%. PSI offers 10-day free demand services and free final-notice forms. It also offers precollection services, post-judgment collection, skip tracing and online status reports. If those efforts fail, PSI can send the account to an attorney in the debtor's area to proceed with litigation. PSI's network of attorneys are all members of the Commercial Law League of America.
Based on our experience, PSI delivers fast, helpful customer service. You can quickly get a representative on the phone who is knowledgeable and more than willing to help.
Rocket Receivable is our choice as the most affordable collection agency given its flat-rate plans and tiered services, which makes its services economical for businesses of all sizes.
Its Stage One Fixed Fee Collections option is ideal for small businesses looking for a low-cost way to collect on past-due accounts. Rocket Receivables charges based on the number of accounts you submit. Rocket Receivables charges $21.95 per account for 10 accounts, $17.95 per account for 25, and $14.95 per account for 50 or more.
Stage Two Contingency Collections is designated for accounts that are more than 120 days late. Rocket Receivables splits recovered funds 50/50 with you. (We recommend that you call Rocket Receivables for exact pricing.) For Stage Two, Rocket Receivables relies on its skilled collectors, written demand letters and legal action when necessary. Rocket Receivable has no minimum account balance, zero sign-up fees and no hidden costs.
Rocket Receivables boasts a high success rate of recovering debt, noting its rate is four times the industry average. It has collected more than $6 billion over the past decade and has served more than 60,000 clients. It operates in all 50 states in the U.S. and serves a variety of industries, including banks, municipalities, credit unions, insurance agencies, retailers, manufactures, and education providers, among others
IC System is our choice as the best B2C collection agency. We selected it based on its decades of experience, transparent pricing and track record of recovering debt. Business owners can tailor their collections with two levels of service and price points that IC System offers.
For easier-to-collect debt, business owners can use the two-stage Recovery Plus program that costs a flat $14.95 per account. IC System send demand letters informing the customer he or she is in collections. If your customer pays, you keep 100% of the money recovered.
For harder-to-collect debt, IC System's Premier Collect Plan, provides credit reporting to the major credit bureaus, credit monitoring, attorney referral services and litigation referral services if legal action is necessary. Customers only pay when money is recovered, and IC Systems' fee is 25% of collections.
IC System has been in business for more than 80 years, which gives us peace of mind that this collection agency knows what it's doing. It also strives to treat people with dignity and respect, to do the right thing, and be proud of how it recovers debt.
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