Contingency vs Hourly: Pro's of using an agency over an attorney

When it comes to recovering debts, businesses often face the choice between hiring an hourly attorney or working with a contingency-based collection agency. While both options can be effective, contingency-based agencies typically provide better results, faster recoveries, and lower financial risk. Below are several key reasons why using a contingency-based collection agency is the superior choice.

No Upfront Costs or Hourly Fees

One of the biggest advantages of working with a contingency-based collection agency is the cost structure. Unlike attorneys who charge hourly rates regardless of whether they recover the debt, collection agencies only get paid when they successfully collect. This means businesses do not have to worry about racking up legal fees without seeing results. Instead, the collection agency is incentivized to recover as much as possible as quickly as possible.

Faster Debt Recovery

Collection agencies specialize in recovering debts quickly. Their processes are streamlined, and they use dedicated teams with proven strategies to get results. On the other hand, attorneys working on an hourly basis are often slowed down by the legal process, court filings, and negotiations. Lawsuits can take months or even years to resolve, whereas collection agencies can often secure payment in a matter of weeks.

Specialized Expertise in Debt Collection

While attorneys have general legal knowledge, collection agencies focus exclusively on debt recovery. They have advanced skip-tracing tools, negotiation techniques, and debtor databases that allow them to track down debtors and recover funds more effectively. Their agents are trained in persuasion and compliance, making them more efficient at getting businesses paid.

Lower Financial Risk

Hiring an attorney on an hourly basis carries a significant financial risk. There is no guarantee of success, and businesses may end up spending thousands of dollars without recovering a dime. A contingency-based agency, however, assumes the risk because they only get paid when they succeed. This ensures they are fully committed to collecting the debt rather than simply billing for their time.

Stronger Incentive to Collect

Since contingency agencies only make money when they collect, they have a vested interest in maximizing recovery. Attorneys working on an hourly basis get paid regardless of the outcome, which can lead to less urgency in resolving cases. The contingency model ensures that the agency is highly motivated to get results as quickly as possible.

When it comes to debt recovery, using a contingency-based collection agency is a far better option than hiring an hourly attorney. With no upfront costs, faster recovery times, specialized expertise, lower financial risk, and a stronger incentive to collect, businesses can rest assured that they are making the most effective and cost-efficient choice. Rather than dealing with drawn-out legal proceedings and expensive hourly fees, businesses can focus on what they do best while their collection agency handles the recovery process swiftly and effectively.

As always I am here to help. Robert Fouse 469-424-3033 x 610 [email protected]