Should You Hire a Collection Agency?

hire a collection agency

Hiring a collection agency is an option that can help you collect on past-due invoices without disrupting your daily business operations. However, it’s important to consider if hiring one is the best course of action for your business.

Incasso bureau inschakelen debt collectors charge a percentage of the total amount of the debt they recover on behalf of their clients. These fees can range from 30% to 40% of the outstanding balance. Before you hire a debt collection agency, research the different agencies and understand their fee structures. Choosing an agency that is reputable and has a proven track record can help you avoid wasting money on unproductive collection tactics.

Agency vs. DIY Collections: Why Professional Help Is Often the Better Choice

You may want to consider hiring a debt collection agency if you have an overdue invoice with a client who has been stalling on paying their bill. This stalling strategy is common in some industries, such as retail and hospitality. In these cases, the client will often set a payment date and then delay contacting you for payments. This can happen for months until the invoice becomes overdue and out of your hands.

When selecting a collection agency, look for one that offers industry-specific collection strategies. They should also stay up to date with industry trends and legal options for collecting on outstanding receivables. You should also ensure the agency is licensed and bonded to collect debt in your state. It’s also a good idea to check the agency’s reputation with the Consumer Financial Protection Bureau and review complaints against them before making a final decision.

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