Entrepreneurship & Small Business

anyone had to hire a collection agency?

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  • Jul 16th, 2016 10:00 am
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[OP]
Deal Addict
Nov 9, 2008
1958 posts
196 upvotes
Thornhill

anyone had to hire a collection agency?

i have 3-4 individuals/buisnesses that refuse to pay, and while i let a couple slide, it's getting to a point where i feel like they are abusing my kindness :/

i'm looking into collection agencies but i'm new to this, anyone have any experience dealing with them? any you guys reccommend and anything i should know? :0

thank you!
10 replies
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May 24, 2003
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Lincoln, Ontario
Go to a paralegal, that's what we have done - and we've gotten results the 2 times we have used them
[OP]
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Nov 9, 2008
1958 posts
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Thornhill
x-batman wrote:
Jul 12th, 2016 12:48 pm
Go to a paralegal, that's what we have done - and we've gotten results the 2 times we have used them
we tried, with no results. and i have no intention of filing a lawsuit... just got out of one and it drained me financially and mentally :(

im doing some search on collection agencies and isnt it just that i sell the rights to collect the money for a small fee, and that's it? or is it more complex than that
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Nov 27, 2005
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I don't understand when you say they don't want to pay. You have no contract with them? Have you asked them why they won't pay?
[OP]
Deal Addict
Nov 9, 2008
1958 posts
196 upvotes
Thornhill
djpr wrote:
Jul 12th, 2016 3:18 pm
I don't understand when you say they don't want to pay. You have no contract with them? Have you asked them why they won't pay?
we do have a contract with them, they just flat out ignore calls, texts and emails, or constantly defer payment.
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Nov 27, 2005
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Bencherstyle wrote:
Jul 13th, 2016 11:53 am
we do have a contract with them, they just flat out ignore calls, texts and emails, or constantly defer payment.
Keep calling and ask to speak to the owner. Notify him that they are not leaving you with any options other than to find alternative measures to receive payment. If they say they cannot make payment, ask for a partial payment now. Based on what you have told me the companies credit must be horrible, so I'm not sure how many collections agencies will touch this. Legally small claims might be your best option.

For future make sure you do credit checks and get references for each client you deal with. Get the credit checks in writing as well.

Also how many days net is the invoice now?
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Mar 23, 2008
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djpr wrote:
Jul 12th, 2016 3:18 pm
I don't understand when you say they don't want to pay. You have no contract with them? Have you asked them why they won't pay?
Contract means squat. It can say what it wants to say, but when they don't pay, it gets expensive to go through the legal process to force them to pay. Depending on the amount, it may be financially better to sell the debt to a collection agency to recoup some of the cost instead of nothing. That's life when doing business. Sometimes business deals go sour.
Sr. Member
Apr 8, 2007
585 posts
154 upvotes
Vancouver, BC
I have used the following collection agency:

http://www.wiggins-adj.com

I believe you just fill out an application. Once they add you as a client, then you fax them the outstanding invoices from your clients and a form with all your client details so that the collection agency can contact them.

There is no upfront fee. They take a percentage of what they collect from the outstanding invoices.

From my experience, most ppl will never pay even if the collection agency is after them. But a handful of them will pay up. So, it is better than nothing.

I also believe that if they don't pay up, the collection agency can also make a mark on their credit report. Not sure how true this is, but if it is true, then it is a bit of revenge for the client skipping out on the outstanding invoice.
Newbie
Oct 8, 2010
94 posts
15 upvotes
Small claims can be done online now saving a lot of time. As soon as you serve the papers, they might just pay up if they're scared or follow through with it.

The issue with collections is that it would go after the business and not the individual's credit rating and most likely ignore them just like they are ignoring you now.

What are the amounts and was it a product or service? You may be able to put a lien on the property if they own it and if it's a big amount.

Also if the amount is worth it, showing up in person with a firm tone can get the message across. Some companies like to hold off bills to help their cash flow until they get nagged enough and pay up. I have clients like this too but they eventually pay up.

Have you thought of showing up?
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Oct 22, 2007
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London
Bencherstyle wrote:
Jul 12th, 2016 12:26 pm
i have 3-4 individuals/buisnesses that refuse to pay, and while i let a couple slide, it's getting to a point where i feel like they are abusing my kindness :/

i'm looking into collection agencies but i'm new to this, anyone have any experience dealing with them? any you guys reccommend and anything i should know? :0

thank you!
I worked for a company that used a collection agency. They gave us a nice package full of threatening letters, and stickers that said "30 days past" and "60 days past" and "Legal Action Pending". It was all bluffing. They basically harassed the debtor for you, and if the payoff seemed significant enough, they would sue them. IMHO, they weren't effective. I suspect everyone we dealt with knew how the game was played.

They did what you can do by yourself in SCC.
Jr. Member
Mar 8, 2014
118 posts
10 upvotes
Mississauga, ON
wiigal wrote:
Jul 15th, 2016 2:01 am
I have used the following collection agency:

http://www.wiggins-adj.com

I believe you just fill out an application. Once they add you as a client, then you fax them the outstanding invoices from your clients and a form with all your client details so that the collection agency can contact them.
1+ for Wiggins. We used CNI before but no success. Wiggins collected and their branch in Calgary will take International cases as well. We'll see how that goes.
The thing is, you can't just let it go and do nothing against crooks.

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