Debt collecting agencies vs. lawyers – Which is the best option?
If you are constantly failing at collecting late invoices from your customers and phone calls, e-mails and letters seem ineffective, then it is time for you to seek professional help. However, many have a great dilemma when it comes to this. Should they give their lawyer a call or should they start searching for debt collecting agencies in London, let’s say? Fact is, different circumstances need different approach, and therefore it all depends on your particular situation. For finding out what is the best option for you, we have some pieces of advice.
1. Debt collectors are the go-to alternative
As an obvious option, you have a professional agency. Because they have access to a number of databases, containing extensive contact details, such as phone numbers, alternative addresses, and possible locations your debtors might have, this makes them perfect for tracking down unwilling clients. Also, using their well-developed negotiation and mediation skills, chances are their outcome will be a favourable one, as their approach is amiable. On the other hand, a lawyer is the last alternative, most of the times when your case reaches a Court.
2. Debt collecting agencies are a more affordable option
Since you might think a lawyer is a highly efficient alternative, pay attention to their fees. Many tend to change their hourly fees, and ultimately you might end up paying a larger amount than the recovered one. On the other hand, some specialised agencies are run by a “no collection, no fee” rule, meaning their clients only have to pay their fees in case of success. Also, no matter what, their charges will always differ, debt collectors being a more budget friendly alternative.
3. Both entities work with different types of clients
While lawyers generally work with large corporations, professional collection agencies work with individual enterprises and small family run businesses as well. However, pay great attention to their portfolio before hiring them, because depending on their previous clients, they might not be appropriate for your particular case, not to mention their fees. The larger the clients, the higher the fees.
These are the most important differences between lawyers and debt collectors. Be careful when choosing one, so they meet your particular needs and budget. A good research will help a lot in cases of this kind, and getting recommendations in a great start.