How to Hire a Collection Agency
Hiring a collection agency can help wanneer een incassobureau inschakelen businesses collect overdue invoices and turn those accounts receivable into actual cash flow. However, this is an expensive service that is best used as a last resort, not a first move. Small businesses should try to collect debts themselves before turning to a collection agency for assistance. The best collection agencies are able to offer a variety of services and will be able to find a debtor who is avoiding payment even when the customer has gone completely missing.
Collection agencies work on commission, meaning that they take a percentage of the money that they collect for you. This is often a significant amount, so you need to decide whether the amount of money that they will bring in is worth the expense.
Choosing the Right Collection Agency: Factors to Consider for Your Business
One thing that you should consider before hiring a collection agency is that they may need to sue the debtor in order to get a judgment against them for nonpayment. This can be an expensive process, and you need to make sure that the collection agency you hire has experience navigating this kind of situation.
You also need to ask the collection agency for proof of insurance in case they are sued by the debtor. This is usually called errors and omissions insurance and is something that most good collection agencies will carry as protection for their clients. Also, check with the collection agency to see if there is a clause in their contract that allows them to break the agreement if you are not satisfied with their services.