Contingency Debt Collection | Contingency Collection Agencies
When running a business, unpaid debts can be a significant problem, leading to cash flow issues and a negative impact on your bottom line – that’s where contingency debt collection comes in. A contingency collection agency works on a “no collection, no fee” basis, meaning they only get paid if they successfully collect the debt. This “no collection, no fee” arrangement means that you don’t have to pay anything upfront, making it a low-risk solution to your debt collection needs.
What is a Contingency Collection Agency?
A contingency collection agency is a third-party agency hired to collect unpaid debts on behalf of a business. An agency that works on contingency will only receive payment if they successfully collect the debt. Therefore, this “no collection, no fee” arrangement means that you don’t have to pay anything upfront, making it a low-risk solution to your debt collection needs.
How Does Contingency Debt Collection Work?
When you hire a contingency collection agency, they will take over the debt collection process on your behalf. They will contact the debtor, negotiate payment terms, and collect the debt. If they are successful, they will take a percentage of the amount collected as their fee. This means that you only pay for the collection services rendered once the debt has been recovered.
Payment Structure of a Contingency Collection Agency
The payment structure of a contingency collection agency is based on a percentage of the amount collected. The percentage charged varies from agency to agency but generally ranges between 10% and 50% of the amount collected. This fee covers the cost of their services, including the time and resources spent on collecting the debt. You only pay this fee if the debt is collected.
Why Choose Construction Credit and Finance Group to Collect Your Debt?
At Construction Credit and Finance Group, we specialize in B2B collections for the construction industry. Our team of experienced debt collectors understands the unique challenges of collecting unpaid debts in the construction space. We have developed proven strategies that help us recover the money you are owed quickly and efficiently.
We also understand the importance of maintaining a positive relationship with your clients. That’s why we handle all communication with the debtor in a professional and respectful manner. Our goal is to recover the debt while maintaining your reputation in the industry.
In addition to our debt collection services, we offer credit department consulting, lien filings, private investigations, and debt collection software, to help you avoid future bad debts. Our team can help you establish credit policies and procedures that reduce the risk of non-payment and increase your chances of recovering unpaid debts.
Construction Credit and Finance Group is a world leader in the B2B debt collection space, specializing in the construction industry. Contact CCFG today at 800-848-4176 to get started.