Selection of a Debt Collection Agency in Michigan

 There are many choices when searching for debt collection agency services in Michigan. With so many options, how does one pick the right vendor for you and your business? Before this article considers the various points when searching for a suitable debt collection agency in Michigan, we should clarify that we are referencing business-to-business or b2b credit transactions only. Your business is owed money to another company, and you recognize that the vendor you select must be an expert in this field.

Firms that provide commercial debt collection agency services in Michigan are not required to be licensed. Still, we suggest otherwise. State law requires a licensed agency to maintain a separate clients trust account for clients’ money. The manager must pass a state-mandated examination to qualify for the license. In this article, we stress the word “should” because all the attributes mentioned above are surprisingly not necessary when providing commercial debt collection agency services in Michigan. While not required when running a commercial agency, would you not take more comfort knowing your vendor had the added protections of a licensed agency?

A commercial agreement often contains language that makes the business principal (owner) liable. Clauses that contain personal guarantees, create a joint and several liabilities, or a co-customer agreement, are very common. If the corporate customer (your client) goes out of business, the commercial collection agency service can pursue the business owner for the company’s debt. While there has always been a clear distinction between consumer and commercial transactions, those lines are becoming increasingly blurred through the efforts of the Consumer Financial Protection Bureau (CFPB). Hiring a licensed commercial collection agency services provider in Michigan will ensure you have one more layer of protection against risk to your business.

Additionally, the commercial collection service provider you choose should have access to Michigan’s Secretary of State’s website and be able to search property deeds in all counties across the state. Access to public and paid databases lets your vendor quickly assess your debt recovery potential.

While you may have a favorite commercial collection agency outside of Michigan, a resident Michigan agency will have established relationships with local credit managers, industry groups, and business connections that enable them to investigate your past-due customer and get quick resolution of your receivable. This depth of knowledge of your customer and local market conditions can often help you avoid an unnecessary lawsuit that out-of-state commercial collection agency service providers frequently recommend.

Finally, once you have narrowed down your choices of Michigan-based commercial collection agencies, we recommend selecting the agency that employs collection agents with the Certified Commercial Collector designation awarded by the International Association of Commercial Collectors, an industry-recognized certification program. These professional negotiators maintain standard educational requirements and are considered the elite of their profession.

What Does a Trusted Collection Agency Service in Michigan Look Like?

We can't speak for our industry colleagues, but here is what AAB promises to do (or not do) as your collection agency service provider in Michigan. We will not use outrageous hyperbole to impress you. We won't guarantee your account will get paid. We will not hold onto your money for longer than legally mandated, and we refuse to accept debts from creditors who want to make their customers’ lives miserable.

Getting started with a collection agency service in Michigan should be simple. The agency representative should thoroughly discuss your company, your industry, and the common reasons why your customers can't pay. The agency should ask for a copy of the standard agreement between you and your client so they can educate themselves about the terms and conditions governing the relationship and transaction with your customers. The agency will want to satisfy themselves that the debts are valid. And finally, the agency shouldn't pressure you to use them, especially if they don't have expertise in your industry.

 

Collection Agency Services in Michigan for You

For the last 50 years, AAB has been helping creditors and debtors to resolve their outstanding accounts amicably. If your business needs collection agency services in Michigan, contact us today for a confidential conversation about your specific situation. We will either be able to assist you or make an introduction to one of our strategic partners.

 

If you want to discuss your specific situation or are contemplating making a switch between vendors, call us at 1-866-448-3936 or send an e-mail to info@accountadjustment.us. Should you prefer face-to-face, CLICK HERE to schedule a video meeting. We would be pleased to review your concerns and give you unbiased feedback.

Common Misconceptions about Business Debt Collectors

Our firm has been in the business debt collection industry for nearly four decades. Over that time, we come across various misconceptions about what effective business debt collection looks like from the creditor's perspective. Some of the misconceptions include;

"We only use attorneys"-this is a prevalent option. Attorneys are excellent at obtaining court orders, but you still have to find a way to use the order to get paid. Most business debt collection attorneys are outstanding operators, but you must instruct them on what to do next. Plus, attorneys can't report to the credit bureaus. At AAB, you don't need to give us instructions. We know how to dig for the information required to bring your customer to the negotiation table.

"Would you buy this debt from us?"- AAB is not a debt purchaser. The creditor must have a corporate credit application before anyone would consider buying the receivable. They must also provide proof of delivery, an acknowledgment of the debt by the customer, and the debtor company must be operating as a going concern. Typical business debt collection is not always this straightforward. AAB works on a commission basis and is adept at working through the usual stall tactics to get your claims paid.

"We received a purchase order, did the work, and now they won't pay us" - Unfortunately, the probability of success in business debt collection is directly proportional to the credit quality of your customer. If your firm doesn't thoroughly check the credit quality of your prospective customer, you could be in for a significant loss. Sometimes the potential customer is a worldwide conglomerate with an excellent credit rating, yet you still have the experience of getting paid slowly. At AAB, our business debt collection knowledge helps us quickly navigate these challenges.

 

Trusted Business Debt Collection in Michigan

If your firm is experiencing issues with business debt collection or other issues getting paid, call us at 1-866-448-3936 or fill out our Contact Form. Don't call an expensive law firm - let AAB check the probability of success of your business debt collection issue first. Remember, we only get paid if you do.

Our Collection Process

Collection agency services are one of our basic services. We work with forwarding-thinking companies, which is why we created The Proactive Receivable Solution™. This advanced process helps you build a proactive receivable system in your company to ensure you get paid in a timely and consistent manner. It also allows you to avoid The Reactive Bad Debt Trap™. 

We have two levels - basic and advanced. With basic, we provide you with our essential collection agency services. You can get the basic from many other companies, however, the advanced process we’ve developed, The Proactive Receivable Solution™, takes everything to a much higher level and is only available from AAB. Additionally, you don't have to hire us for collection agency services to get the advanced program – you can keep your existing collection agency services provider if you wish. 

Our Proactive Receivable Solution™ has four components:

1. AAB designs a blueprint for a more advanced receivable solutions for your business. 
2. You get the right people and train them properly. 
3. You use proactive credit-oriented marketing strategies to ensure that you work with only creditworthy customers and Prospects
4. You put in place a proactive and consistent credit application system. 

If you're interested in The Proactive Receivable Solution™, contact our office today for a free starter session. We’ll assess your current situation during this session and begin work on your customized Proactive Receivables Blueprint™. 

Collection Agency Services

For the last 50 years, AAB has been helping creditors and debtors to resolve their outstanding accounts amicably. If your business needs collection agency services in Michigan, contact us today for a confidential conversation about your specific situation. We will either be able to assist you or make an introduction to one of our strategic partners.

Our History as a Collection Agency

AAB has been providing collection agency services in Michigan since 1973. In the 1970s, collection agency services were simplistic. Our agents used file cards with paper documents attached to the back of the card. Back then, the telephone companies charged a lot of money for long-distance calls – a collection agency's second-largest expense was its telephone bill. Times certainly have changed! 

Today, collection agency services are easily performed from virtually anywhere in the world. While our firm provides collection agency services in Michigan, we also cover the rest of the United States, Canada, Mexico, and beyond. The most common areas we serve include landlords, building supply companies, fuel, equipment, rental companies, and professional service firms. 

Providing collection agency services has changed dramatically since the 1970s. In the 2000s, AAB began providing proactive credit consulting, early-stage collections, customers save campaigns, traditional third-party collections credit reporting, and litigation management. 

Collection Agency Services

For the last 50 years, AAB has been helping creditors and debtors to resolve their outstanding accounts amicably. If your business needs collection agency services in Michigan, contact us today for a confidential conversation about your specific situation. We will either be able to assist you or make an introduction to one of our strategic partners.

The Nuances of Business Debt Collection

Business owners, credit managers, and purchasing professionals need to know the expertise gained when retaining a business debt collection professional. Usually, when a business is owed money, the owner or finance professional will perform a Google search for “collection agencies near me” or similar terms. This search will bring up all collection agencies within a certain radius of their location. Suppose your company regularly extends credit to business customers across a broad geographic region. In that case, the above search will produce minimal options considering your actual business needs. 

Business debt collection encompasses much more than simple collection agency services. Companies extending credit to their business customers should also consider credit checks, accounts receivable management, and pre-legal assessments. Working with a vendor that can help you manage the order to cash cycle for optimal efficiency will provide better performance than attempting to manage the process and people independently. 

Business Debt Collection Michigan

Your business debt collection provider should assist you by managing your credit department for maximum efficacy in the local and broader market. Contact us today for a comprehensive discussion. AAB can help your company minimize risk while getting the best possible return on investment from your personnel and credit customers. 

Evolution of Debt Collection Agencies

Debt collection agencies are companies or individuals authorized to act as a third party to obtain past due payments on behalf of a creditor, but they have grown to serve many other purposes as well. These agencies can also be a data furnisher – they report all debtors assigned for recovery to the various credit bureaus. 

However, before reporting the data to the credit bureaus, the agency must be sure that all debts assigned for recovery are legitimate debts. A responsible debt collection agency will take every precaution to ensure that all data is accurate before reporting a debt to the credit bureau. Sometimes creditors make mistakes that the debt collection agency has no way of catching. If you see that a debt collection agency has made an error on your credit report, call them, and they will be pleased to investigate and make the necessary corrections.

Some debt collection agencies may also manage current debts for customers. Debt collection agency software is superior to most creditors' customer management systems because it focuses only on the contact management function.  When the debt collection agency can easily exchange data with its customer through an API, they can make calls under the creditors' name and help keep the client's receivables current and the customers paying within terms.

Debt Collection Agency Michigan

Account Adjustment Bureau has been collecting debts for nearly 50 years. If your firm is looking for a debt collection agency, contact us today and have a confidential discussion on how you might benefit from retaining our services.

What Exactly Is A Debt Collection Agency?

A debt collection agency is a company or individual authorized to act as a third party on behalf of a creditor to obtain payment from a past-due customer. The history of debt collection agencies is as old as commerce itself. As long as creditors allow customers time to repay debts there will be a need for debt collection agencies.

Typically, a debt collection agency gets paid a commission depending on how much money they recover for their customers. Historically, the commission debt collection agencies charge runs between 20% to 50%. They will usually charge a higher fee if the debt is older or if it’s expected to be more difficult to collect.

Debt Collection Agency Michigan

Account Adjustment Bureau has been collecting debts for nearly 50 years. If your firm is looking for a debt collection agency, contact us today and have a confidential discussion on how you might benefit from retaining our services.