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Set up competition

"Make suppliers compete for the best service rates and don't be afraid to tell them that you have a better deal elsewhere. If they cannot match it they have to explain why their product is worth its price."

- Andy, Insurance, Torrance, CA

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Don't get locked into long-term deals

"When looking for a collection agency never pay up front, and do not sign any binding contracts. You will have to sign a service agreement to give them the legal right to work your cases but you should be able to cancel that at any time."

- Sandra Bateman, Health Care, Kent, OH

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An alternative for Texans

"Sure you need a collection agency? With debts less than $5,000, small claims court in Texas might work as well."

- Neill, Construction/General Contracting, Waco, TX

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Improve your collections by starting with your customers

"The credit collectors all have pretty much the same plan -- around 25% for commercial collections. Be sure when you start a business with a net due, have customers sign a contract stating they will pay for any and all collection costs if they fail to pay past due invoices."

- Michael Ipock, Manufacturing, Branson, MO

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Don't pay up front

"For collection agencies - do not pay any money up front - the $10/per account or per month is wasted if they do not collect on that account. There are plenty of other companies that you do not have to pay unless they collect and some that add the percentage they collect on top of the original amount due so that you end up getting all of your money back in the long run!"

- Cara, Computers – Hardware, South Burlington, VT

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