We’ve all done it..accidentally bounced a check owning to some stupid error. However, when a check is decline due to insufficient funds (NSF), the person (or business) who the check was made out to still needs to get their money. Enter the NSF check collection agencies.
A company which specializes in bad check collection has loads of things going for it. I was surprised to learn that it is actually free to use such a company. The fact that a business owner does not have to pay to have the NSF fees recouped, seems to be to be a great reason for a company to use a NSF check collection group. Additionally, these companies can pay as often as weekly, which is perfect if you are looking to improve revenue.
Both checks which come from a business and a personal checking account can be collected on using a group’s method of electronic re-presentation. Said checks must be from the past 180 days and for under $2500. Out of state checks (is this even still an issue in the era of Hostile Takeover Bank? Seems like it is now a moot point) are accepted, and there are no long term fees or contracts.
Also, these businesses’ recovery rate of money owed are much higher than those of a collection agency. As collection agencies typically charge for their services, this fact is yet another pro to using an electronic re=presentation company.
Have you heard of these businesses? As a business owner, would you use one? How do you avoid insufficient checks?
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