Are You Giving Business Debt Collections Permission To Control Your Life

Collectors like to talk.It's what they do all day.They will threaten, cajole and do everything in the book to traumatize your receptionist and wear you down.They pile on the stress, when you're already in shock.And it works, which is why so many of them are outrageously rude and offensive.

There is no Fair Debt Collections Practices Act to protect business people.So business debt collectors are not held back by the protections given to consumers.It's like the Wild West.Literally so, as a local business owner discovered, when a collector showed up at his door with a gun on each hip.
Collectors can give themselves legalistic titles.They sometimes call themselves 'officers.' And company names can be fabricated to make them sound like law firms.When you've picked up the phone to hear someone say, 'This is Mr.Screw, the pre-legal officer of Cheatem and Shyster', you know what I'm talking about.

Obviously, there is good and bad in everything and in every business and profession.It's characterized by the bell-shaped curve.At the one extreme of the collection business there are really talented people.They listen carefully to your side of the story and are adept at getting what they want by doing so.At the other end there are those who just seem to go through life having bad days.It's probably these people who give the industry such bad name.And it's why there are more complaints filed with state and federal agencies about the collection business than any other category.I wonder why this is?

How do you deal with these people?First thing first.Between you and me, collectors have no power.Pull back the curtain and you'll find the Wizard of Oz.It's all smoke and mirrors.Collection firms typically get paid up to fifty percent of what they squeeze out of your company, depending on the age of the account.And they are assigned accounts for a set period, after which they typically lose them if they don't collect money.

If the account is then forwarded to a law firm, the collection company receives a small percentage of anything the attorney is able to rake in.
The big threat collectors make is, 'We'll sent it to our attorney for legal action.' Actually, this is the last thing they want to see happen, if in fact they believe they can squeeze cash out of your starving business.Or they may also threaten to force your client into bankruptcy.Excuse me?At what astronomical cost, with whose money and to what end?

Your best weapon is knowledge.Give collectors a good reputation to live up to.And if you are up against a rude and obnoxious individual, let them rant.Don't wrestle with a pig.You both get dirty and the pig loves it.Stay cool and calm.

Work out a settlement deal with them.This has to be agreed, in writing and signed by both parties, before you transfer any of your precious business life blood to them.Take your time and keep to your own schedule, not theirs.The situation is not usually as urgent as they make it out to be.And it's always urgent for them.Especially if they're having a bad month and their car payment is due.

Don't fall into the, 'We just want a good-faith payment,' trap.If you're cash strapped, you can't likely afford anything, whether or not someone wants to call it 'good faith.' Never send money in the absence of a written agreement.Oh, and never, ever pay by phone.You could lose a lot more than expected.

About the Author

He is the author of 'The Battle Scarred Guide to Small Business Debt Relief and Recovery', available at http://amazon.

com.If you want more information on how to protect your business and grow a resilient money machine, check out his company's website at www.biz911.com

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