Approximately one third (33%) of U.S. small business owners estimate their company currently has more than $20,000 in outstanding receivables, and the average U.S. small business has $53,399 in outstanding receivables. Debt collectors usually charge from 25%-50% of the debt they are collecting. They also can leave a bad impression with clients whose accounts are behind because debt collectors are less likely to work out a settlement that may get you faster payment because their fee structures incentivize litigation.
WHY LAWYERS ARE BETTER FOR DEBT COLLECTION:
Lawyers are bound by strict ethical codes and expectations of professionalism. They are more likely to represent the brand and reputation of your business than a call center collections employee or a collections firm.
Streamlined Approach: Call, Demand Letter, File, Collect
A quick call or letter from an attorney generally incentivizes action, and when it doesn’t, it is often time to resort to court filings. Attorneys can consult you at each stage making it an efficient and effective process. We will also take the time to sit down and understand which Clients need to be pushed and which Clients needs to be coddled.
Surprisingly, attorneys are usually less expensive than collection firms. No hidden fees, no surprise charges and no contingency percentages. One flat fee, whether we go to court or not!
HOW CAN TAC HELP WITH YOUR SMALL BUSINESS COLLECTIONS?
At Tooher and Contreras Law, our partners all owned small businesses throughout their careers. We know how critical consistent cashflow is to the health of your business as well as your peace of mind. Additionally, we know the critical value of a small business’s brand and reputation in the community. Our priority is to assist our clients in life’s toughest transitions; one of those transitions is achieving business growth and stability. You can trust your Accounts Receivable with us!
We will treat your clients with respect they deserve and preserve your client relationships. We will collect your debts for a fixed fee so that you can budget for collections. Compare our fees below with your current collection agency:
Fees for Accounts Receivable*
Under 10K: $1,000 annual fee
Under 25K: $2,500 annual fee
Under 50K: $5,000 annual fee
Under 100K: $10,000 annual fee
*Monthly payment plans available for a 5% account management fee
Miscellaneous accounts specific debt collections quoted on a per project basis
Judgement Renewals at a discount hourly rate of $150 per hour
Call us to book an introductory consultation today! (480) 535-5030
Author: Co-written by Emily Gale Tooher and Colleen Contreras, Owners/Founding Partners of Tooher and Contreras Law, PLLC