Should You Hire a Collection Agency?

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hire a collection agency

While hiring a collection wat is een incassobureau isn’t an ideal solution for all businesses, it can be worthwhile when your business has exhausted all other methods to receive payment for overdue invoices. However, you must ensure the agency you hire is reputable and follows all rules about how they contact customers to collect debts.

As a small business, maintaining relationships with your clients is an essential element of your success. Hiring a debt collection agency to take over your past-due account payments is a way for you to continue this relationship with the client and keep them as a potential customer in the future.

Debt Collection Dos and Don’ts: What to Expect When Hiring an Agency

Collection agencies are regulated by the Fair Debt Collection Practices Act and have rules about how they can and cannot talk to customers. They also report unpaid debt to the three major credit reporting agencies–Equifax, Experian, and TransUnion.

Some agencies specialize in certain types of debtors or certain industries. Some excel at securing funds from large companies while others are well-versed in collecting from small businesses and home-based businesses. Find out how the agency you’re considering works and what industry they specialize in so you can be confident they understand your business and can collect on your behalf.

A reputable collection agency may have an excellent track record and be able to quickly and easily collect your overdue invoices. If they do, you’ll likely see the money in your bank account within a short period of time. However, they’ll typically charge you a percentage of what they successfully collect for your company.

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