In the wake of Covid-19, small business owners have faced excruciating circumstances, forcing many to either pivot their business or halt all operations. Undeniably, this trying time has stretched small business owners thin of both financial and physical resources.
To make matters worse, it seems like large billion-dollar enterprises will come out of Covid-19 unscathed. As small business owners continue to chug along, they need to be aware of debt collectors.
Debt collectors are hired by financial firms and service providers to collect debt for them on their behalf. So, if you missed a payment on a service or defaulted on a loan, a debt collector will most likely come knocking on your door. To help you out, we revealed the three largest debt collectors and what to do if they contact you.
These are the most aggressive commercial debt collectors who are notorious for spamming your phone and sending you letters.
Enhanced Recovery Company is one of the largest debt collection agencies in the United States. Headquartered in Jacksonville, Florida, they specialize in collecting debt for financial institutions, credit card companies, and utility companies. Their reach is far and wide, leaving small business owners vulnerable considering they are employed by small business loan and service providers.
Another debt collector to watch out for is Transworld Systems. They collect debt for state and local governments, fortune 100 brands, and financial institutions. If you are a small business owner, you need to make sure you are paying your employee benefits on time, and not letting a payment slip. Transworld works with the largest health care providers and will seek payment immediately, even for the smallest slip-ups.
Believe it or not, Verizon Collections is one of the most advanced debt collectors today. As you guessed it, they are owned and operated by Verizon – one of the largest telecommunications businesses in the world.
From high-speed internet to phone bills, Verizon is deeply intertwined with small businesses and startups. Even though they provide standout services, they need to get paid. If you miss a payment, you can expect a phone call or two from Verizon Collections demanding an explanation and money.
What to Do If a Debt Collector Contacts Your Small Business
Ultimately, if you owe a debt, the best thing to do is to pay it off and move forward. Especially during these trying times, it is easy to let a payment slip through the cracks. Additionally, if you owe money, it will appear on your credit report as a ‘collections account.’
Unfortunately, collections can remain on your credit report for up to 7-years damaging your credit score for years to follow. This is a position you do not want to put yourself in, especially if you are a growing small business that may need access to capital.
The best thing to do is to work with one of the many credit repair companies. They will protect your businesses interest and safeguard your consumer rights that we are all entitled to under the Fair Credit Debt Collection Practices Act (FDCPA).
That’s a Wrap: Debt Collection Agencies
Receiving a notice from a debt collection agency is never a good thing. If you want to protect your credit score and business, then it is best to make your payments on time. Set up automatic payments and routinely monitor your credit report. It is better to be safe than sorry, especially if your business is making promising strides.