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What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
What are the benefits of buying collection agency leads
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What are the benefits of buying collection agency leads

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A lender can sell these debts to a debt collection agency by the lenders of the debts. So why does a debt collection agency buy bad debts? A debt collection agency buys bad debts so that it can …

A lender can sell these debts to a debt collection agency by the lenders of the debts. So why does a debt collection agency buy bad debts? A debt collection agency buys bad debts so that it can retrieve these bad debts from the debtors and make a profit.

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  • 1. IS IT WORTH IT TO YOUR BUSINESS?
  • 2. WHAT IS A DEBT COLLECTION LEAD?• A debt collection lead is a list of debtors of a company, organization, individual, or a bank. In fact, debt collection leads could be of many such entities. They are collected, stored, and managed by debt collection agencies.• A debt collection agency can be sold these debt collection leads by the lenders of the debts. Now as to the question – why does a debt collection agency buy bad debts? A debt collection agency buys bad debts so that it can retrieve these bad debts from the debtors and make a profit.• For instance, a bank may sell their bad debts to a debt collection agency. Assume the total amount of debts was $100,000. The bank sells this amount of debts to the debt collection agency for $75,000. This means that the debt collection agency has bought these debts with a $25,000 discount. And the debt collection agency enjoys the freedom of recovering the entire $100,000.
  • 3. HOW DO DEBT COLLECTORS DEAL WITH DEBTORS?The way debt collectors deal with debtors varies bycountry and prevailing laws on debt collection. Somedebt collectors may resort to pressing methods, whilesome debt collectors could help debtors pay off theirdebts. They may offer incentives to debtors. They maywaive off the interest rates on loans. They may do avariety of things to help debtors pay their dues. This is done based on the feasibility study conducted by the debt collection agency on the debtor. They inspect the income of the debtor on a yearly basis, the payment potential, and pattern of honoring payments. Such considerations and many others go into determining how much help a debtor should be given. If need be, a debtor may not be given any assistance at all.
  • 4. BUYING DEBT COLLECTION LEADS• A debt collection agency has to buy debt collection leads. This is the nature of its business. Without buying debt collection leads, it cannot be in this business. But buying debt collection leads are very risky. At the same time they are very profitable.• Talking about the risks involved in buying leads. Many companies sell debt collection agencies debt collection leads. This is as opposed to buying such leads directly from the lending firms or institutions. Such companies specialize in helping debt collection agencies get high quality leads. What is a high quality lead? The following pointers help you understand the same.
  • 5. BUYING DEBT COLLECTION LEADS PART 2• A high quality lead is a person, business, or an entity that has a good payment track record.• A debt collection agency can expect to recover debts from this lead.• A debt collection agency may not experience stiff resistance from this lead.• Payments are made within time or at least payment commitments are honored.As you can note, buying high quality debt collection leads is something that alldebt collection agencies want. But in the real world, there are many good leadsand bad leads in equal measure. And that is why buying debt collection leads isrisky.
  • 6. BENEFITS OF BUYING DEBT COLLECTION LEADS The following are some of the benefits of buying debt collection leads:• Debt collection agencies instantaneously make a profit by buying debt collection leads. Almost every lender sells bad debts to a debt collection agency for a discount.• A debt collection agency can recover the full amount of debts of a given bank, company, individual, organization, and such entities. This allows them to stay in profit if they can recover all the money owed.• This is another way how bad debts are managed. Without debt collection agencies, banks, financial institutions, and companies have no other way to recover bad debts. The only option is to take their defaulters to court. But recovering money from defaulters after court proceedings is long winded. A better option is to sell these bad debts to a debt collection agency or many of them. By selling these bad debts, the lending entity recovers a portion of their bad debt.
  • 7. HOW TO BUY DEBT COLLECTION LEADS• A debt collection agency has to conduct due diligence on the companies that generate leads. These companies generate leads from various sources such as credit card companies, banks, financial institutions, and private mortgage lenders.• The Internet is a good resource to find out about the credibility of the lead generating company. The Association of Settlement Companies has some standards in this regard. Debt collection agencies need to check with this association to understand the process to buy leads.• A debt collection lead generating company has to provide information on how its leads can be authenticated. It is desired that this company also let know how it generates such leads.
  • 8. HOW TO BUY DEBT COLLECTION LEADS PART 2• There are many types of debts, and hence many types of debt collection leads. Therefore, it is important to understand the type of leads to buy. Successful debt collection agencies specialize in one debt collection area before moving onto others. Spreading into too many debt collection areas is risky.• The Association of Settlement Companies indicates that concentrating only on a few debt collection domains helps debt collection agencies get better leads. Otherwise, they may be flooded with junk leads that yield no results. This could spiral debt collection agencies into heavy losses.
  • 9. THE GENESIS OF RECOVERING BAD DEBT• Recovering bad debt and settling them is not an easy business. An individual or an entity could be in bad debts for various reasons. But no one wants to be in bad debt wontedly.• A bad debt recovery agency has to operate within a threshold boundary to recover debt. It may not have too many choices in this regard. An informed debtor may never yield to persistent pressure, while some debtors could be pressurized.• The success or failure of a debt collection agency is based on the quality of leads its buys. It is also based on the way it recovers these debts. Ultimately debt collection agencies are god for the financial ecosystem. Without them, many banks, financial institutions, mortgage lenders, and Credit Card Companies could have gone bankrupt.
  • 10. FOR MORE INFORMATION ON DEBT COLLECTIONAGENCY LEADS VISIT: http://www.commercial-collectionagency.com

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