How to Hire a Collection Agency to Manage Your Overdue Accounts

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Most business owners invoice their incassobureau inschakelen zakelijk customers for goods and services and are aware that occasionally a customer will pay late. When a debtor fails to pay an invoice on time, it’s important to act quickly to protect your business’s reputation.

A collection agency will work diligently to recover the outstanding debt owed by your customers. They will use various databases to track nonpaying customers and communicate with them via written notices, phone calls or in-person visits. They will also negotiate with your customers to settle their accounts for a lower amount than the full invoice amount. They are legally able to sue the debtor for unpaid invoices, but they must follow restrictions put forth in the Fair Debt Collection Practices Act (FDCPA).

Maximizing Recoveries: How a Collection Agency Boosts Your Bottom Line

The earlier you send an account to collections, the more likely it will be that you receive payment. Some businesses wait to turn over an account until it’s well past the 90 day mark, when the odds of receiving a debt repayment drastically decrease.

When selecting a collection agency to manage your overdue accounts, it’s essential to review their fees. It’s not uncommon for collection agencies to charge a percentage of the amount they collect, but the exact percentage varies from company to company. You can expect to pay a lower percentage for a smaller debt balance, while larger debts will result in higher collection rates. Before signing an agreement, ensure that the agency is licensed in your state and has a proven track record of success.

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