When to Hire a Collection Agency

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If your company has credifin-nederland.nl invoices from customers, it may be time to hire a collection agency. These agencies specialize in chasing down uncollected accounts receivable, often for a percentage of what they recover. However, it’s important to carefully consider if an agency is right for your business.

While a debt collector might be an effective tool for settling overdue accounts, you should still try to collect the debt yourself before turning it over to an agency. This will help preserve relationships with customers, and it can also save your company money in the long run.

Debunking Collection Agency Myths: What You Need to Know Before Hiring

A collection agency can be a good choice if an overdue payment has been more than 90 days late. After this point, the chances of collecting the debt decrease significantly. An agency can also help if a customer has multiple bounced checks or failed online payments. This could indicate that they’re trying to avoid paying you what they owe.

You should look for an agency that has a track record of success in your industry and is compliant with consumer protection laws. The Consumer Financial Protection Bureau is an excellent resource for checking out complaints against debt collection agencies. You can also check whether an agency is licensed to work in your state, which will increase the likelihood of successful recovery. Finally, you should make sure the agency is insured to protect your company in case of a lawsuit. This is usually included in the contract you sign with them.

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