Tuesday, May 10, 2016

Commercial Collection Agencies in Canada


Profit from an option you may not have considered.

   Commercial debt recovery in Canada is alive and well. Like our U.S. cousins, there are contingency lawyers and collection agencies; however the number of contingency law firms from which to choose, are much fewer than the U.S. market. If your law practice or commercial collection agency regularly receives Canadian claims, it becomes critical that you partner with a supplier that can provide the following:

  • Reports to all seven Canadian credit bureaus
  • Provides 24/7 on-line access for instant reports
  • USD clients trust account to avoid currency exchange problems
  • Full professional liability insurance 
  • Capable of working in all Canadian provinces & territories
  • Innovative solutions like Pre-judgement garnishes/Seizures and Mechanics or Construction Liens. 
  • Fully compliant with Canadian Laws



   Generally there are two reasons why a company doesn't pay its bills. It’s either a dispute of some nature or it is a cash flow problem. In either circumstance your clients will want you to act quickly; however filing a suit isn't always the answer and doesn't guarantee payment.

   More and more American and International law firms, commercial collection agencies, and creditors are submitting claims to Canadian Commercial agencies prior to considering legal action. A collection agency only receives payment if it collects. The agency does not have the ability to earn a fee from the provision of hourly legal services and therefore are highly motivated to liquidate claims quickly for the highest possible amount.

   The collection agency will make the determination very quickly if the reason for non-payment is a legitimate dispute or cash flow problem and will obtain all the necessary searches to confirm if legal action will result in a high probability of recovery or turn a bad situation even worse for your client. A professional Canadian collection agency understands your needs for timely and through reporting so you and your client can make sound business decisions. Choosing an agency can be a daunting task. Look for the agencies industry affiliation and certifications. Does the agency owner actively participate in industry conferences? Do they specialize in commercial debt collection? Are they able to supply references in your clients industry and do they understand your clients business?

   Unless you are 100% comfortable picking a Canadian commercial debt collection provider, we recommend equally splitting your forwarded accounts to at least two vetted suppliers and let the results and service speak for itself.

About the author: Brad Lohner is a 32 year veteran of the Canadian collection industry. He owns a commercial agency and lien filing firm, each capable of providing service Canada-wide.

For more information look him up on LinkedIn

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