Our Fees For Commercial Collection Services
By: Goldberg & Oriel Attorneys at Law
Share This Post
Our Fees For Commercial Collection Services
Goldberg & Oriel structures our Commercial Debt Collection fees on a contingency basis. We only make money if we collect your debts. Our firm has over 40 years of experience collecting commercial debt in Massachusetts and across the U.S.
Goldberg & Oriel Fee Structure for Commercial Collection Services
We tailor our debt collection fees to each specific case. Most clients can expect to pay between 30% to 40% of all funds recovered. If the collection requires no more than sending a demand letter, the fee can go as low as 25%. We also will consider a one-time rate for clients that retain our services for multiple collection cases.
Advantages of Contingency Fee for Debt Collection
Commercial debt collection can be a difficult process. Goldberg & Oriel believes that contingency fees are the best way to build long-term business relationships with our debt collection clients for the following reasons:
1.Align Interests of Collection Firm and Clients
The best way to create a strong-long term business relationship is to properly align the interests of the parties. In the debt collection field, where debtors are often hard to track down, cost-effective use of time and resources is critical. Spending too much effort pursuing uncollectable debt will create losses.
That’s why Goldberg & Oriel uses a contingency fee model. We maximize our profits by collecting your debts in the most efficient way possible. It ensures that you will not waste money on futile collection efforts.
The contingency fee structure also creates strong motivation for our firm. If we fail to collect your debt, our efforts will create a net-loss for us.
2. Our Years of Experience
Many firms only rarely need collection services, which means it isn’t profitable for them to develop an in-house team. Debtors often try to dodge their obligations by refusing to answer the phone and respond to email. They can even move their office or close their business and file for bankruptcy to avoid debt.
While many businesses will not know how to counter such tactics, the Boston debt collection lawyers at Goldberg & Oriel have seen them many times. Debt collection is the core of their practice. Their experience will maximize your returns on difficult-to-collect debt and allow you to focus on running your business.
3. Limits Risk for the Client
Our contingency fee structure ensures that our clients will not lose money by engaging our collection services. If our efforts to collect your debt fail, we charge nothing.
Debt collection can also involve legal risks. Debtor-creditor is a complex area of law. Inexperienced collectors can easily violate debtor rights, which can lead to costly counter-suits. However, our firm’s extensive experience in the field will substantially lower the chances of such an outcome.
4. Hiring a Debt Collection Firm Sends a Strong Message
Receiving a letter from a law firm tells the debtor that you are serious about collecting the debt. It signals that their credit-rating will suffer if they fail to pay in a timely manner. Further, it tells them that they are up against an entity that has the expertise to enforce their obligation to your firm.
Many times, a collection letter from a law firm will lead to immediate payment. Most debtors want to avoid a costly legal battle over unresolved accounts. Paying their debt is usually less expensive than fighting collection efforts.
5. Capacity to Sue
The main advantage of hiring a debt collection lawyer over an agency is the ability to sue. The lawyer is capable of enforcing the debt by taking legal action. An agency can only contact and demand payment from a debtor. If they fail to respond, it takes a lawyer to secure your legal right to payment.
This capacity is particularly important in cases where the debtor lacks the liquid funds to pay but has tangible assets that can be attached through legal action. Hiring a debt collection agency will simply waste time or add cost when legal action is necessary.
6. Protects Relationships With Customers
Even regular customers can struggle to pay bills. If your firm attempts to collect such debts, it can harm a long-term relationship that you wish to protect. Hiring a third-party collection firm can prevent uncomfortable interactions with your client.
The last thing you want is for debt collection to interfere with a profitable business relationship. By making the collection firm the “bad-guy,” you lower the risk of offending an important customer.
Court Costs and Disbursements
Clients are also responsible for paying any court costs and disbursements that may occur related to legal action involved in their case. Court costs can include filing fees and any other expenses related to the court, while disbursements involve such things as expert witness fees, courier fees, costs of preparing courtroom evidence, and private investigator fees.
However, these costs only apply if there is a successful collection. You pay nothing if Goldberg & Oriel is unable to obtain payment.