When to Hire a Collection Agency

hire a collection agency

There are a few times credifin-nederland.nl it may be appropriate to hire a collection agency. For instance, if an invoice is more than 90 days overdue, it’s likely time to call in the professionals. Agencies are experts at collecting debt and have the tools to help you get back what’s owed, including contacting debtors via phone, email or in-person, sending letters, reporting to credit agencies, and even taking legal action.

Navigating the Collections Landscape: How Collection Agencies Assist Clients

You’ll want to do some research to find an agency that specializes in your industry or size of business. You’ll also want to make sure the agency is licensed and abides by the Fair Debt Collection Practices Act. The Consumer Financial Protection Bureau takes complaints against debt collectors, so you can check on any potential agencies before hiring them to interact with your customers.

Depending on the collection agency, you may pay them a percentage of the amount they collect. Typically, this is around 30%. The remaining 70% goes to the customer who owes the money.

Hiring a collection agency can be expensive, but it might save your business money in the long run. If the pros outweigh the cons, it may be worth the cost of getting your unpaid invoices collected.

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