If you have customers who are consistently late paying for their goods or services, it may be time to hire a collection agency. Collection agencies work on a pay-per-collection model where they get paid when they collect money owed to your business. Typically, this is a percentage of the total debt collected.

What is the purpose of a collection agency?

If your business has a large amount of outstanding accounts receivable, you should hire a reputable collection agency that is committed to helping small businesses stay financially healthy. They can help you recover past-due payments and maintain a positive reputation with current and former consumers. Go here : https://www.breyta.nl/

The following article discusses some key questions you should ask when hiring a collection agency for your business.

Check for References

Look for references from the agency you are considering using before hiring them. This will allow you to verify that they have successfully worked with other clients like yours in the past. In addition, the more industry experience they have in your specific field, the better they will be able to perform collections on your behalf.

Check for Insurance

Make sure the agency you are working with carries Professional Liability insurance. This will protect you in case a debtor feels that they have been treated unfairly and files a lawsuit against your company.

Some collection agencies use stall tactics in an attempt to avoid contacting debtors after a certain date. Make sure the agency you are working with is reputable and abides by the Fair Debt Collection Practices Act (FDCPA). If they do not, you could be held liable for any legal issues that arise.