Who Should You Go First- A Collection Agency or A Collection Attorney

You are ultimately accountable for managing the money that comes into your company as a business owner. If you work in a field where you can't get paid in full when the product or service is delivered, you've probably dealt with clients who don't pay their bills on time. When a client fails to pay on time, you have three options: address the situation yourself by sending letters, hire a collection agency, or look for the collection attorney near me in Los Angeles over the internet.

It can be difficult to determine who you should approach first - a collection agency or a collection attorney.

Debt Collection Agencies

For businesses wanting to recover debt from customers, debt collection agencies are typically the logical solution. Specialized phone systems, computers, and software aid debt collection agencies in automating the process and making it more cost-effective and efficient in collecting payments on delinquent accounts.

The bulk of debt collection agencies in the United States are paid on a contingency, third-party basis, which means they are paid only when they collect on debts owing to them. Debt collection services are used by a variety of businesses.

Debt Collection Attorneys

There are lawyers who specialize in debt collecting in addition to debt collection agencies. If you're considering taking legal action against a client who hasn't paid, an attorney may be more cost-effective than a collection agency. A debt collection attorney may charge an hourly fee, a percentage of the money recovered, or both. Attorneys frequently charge a flat fee or demand that the debt be paid within a particular time frame. Any court-related fees associated with a lawsuit are not included in the payment to a collection attorney.

You're better off employing a debt collection agency if you're not planning on taking your customer to court.

Most businesses initially turn to a debt collection agency, then to a collection attorney if the agency is unable to handle the situation. Whether you decide to use a collection agency or an attorney, it's critical that you do your homework first.

Benjamin, Chaise & Associates is a nationwide debt collection agency in Los Angeles. If you own a small business, you should definitely contact the trained debt collectors at Benjamin, Chaise & Associates.