Tips for Hiring a Collection Agency

When your business invoices customers for goods or services and those customers fail to pay as promised, it may be time to hire a collection agency. While a percentage of the debt collected goes to the agency, it can be well worth it if all other avenues for recovering what is owed have been exhausted. However, before you send your overdue accounts to collections, make sure you take the necessary steps to properly vet any potential agencies.

What are the benefits of collection agency?

A Tips voor inschakelen incassobureau will be willing to provide you with references from other businesses they’ve represented in the past. This can give you an insight into their effectiveness and professionalism. Make sure to request the contact information of those clients so that you can reach out and ask questions.

Ask About Industry Expertise

Make sure the agency you’re considering has experience with your type of business. A construction company’s invoices may not be as straightforward as those of a fitness gym, for example. A collection agency with industry expertise can help you settle those difficult debt issues more easily and efficiently.

Check for Complaints

A quality collection agency will be able to demonstrate that they follow the Fair Debt Collection Practices Act (FDCPA). If they don’t, you can report them to the Consumer Financial Protection Bureau for investigation.

A professional collection agency will be able to answer any of your questions about the process, including how long you should wait before sending an account to collections and the cadence and triggers of their communication with nonpaying customers. They should also be able to explain the fees they charge and how that is determined.

Categorized as Business