When to Hire a Collection Agency

Hiring a collection agency can be a great way to recover past-due payments on unpaid invoices. However, businesses should carefully weigh the costs and benefits before hiring one. This article discusses 12 questions that companies should ask a potential collection agency before making a decision.

A debt collection agency helps

wat kost incassobureau and creditors recover their outstanding dues from delinquent customers. They often work on a contingency fee basis, meaning that they collect only if they successfully get the money back for their clients. They also have a variety of tools and strategies to help them reach out to customers and negotiate payment. They can even take the debtor to court if necessary to ensure that they pay.

When to Hire a Collection Agency

It may be time to hire a collection agency when an outstanding invoice is several months overdue, typically more than 90 days. This is especially true if the customer has not responded to your previous attempts to collect payment. Additionally, it is important to note that the longer an invoice goes unpaid, the less likely it will be collected.

If you decide to go with a collection agency, be sure to choose one that is licensed in your state. Some states require collection agencies to have a bond before they can collect debts from consumers. In addition, the best collection agencies design industry-specific collection strategies and stay abreast of legal trends to ensure full compliance with credit and collections laws.

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