Why You Should Engage a Collection Agency

All incassobureau inschakelen that extend credit will have to deal with delinquent accounts at some stage. While some have well-developed internal processes for following up on overdue invoices, others prefer to engage a debt collection agency. A debt collection agency will be able to devote more resources to your overdue accounts and are experienced in the legal requirements of each state in which they operate. In addition, they have a range of sophisticated tools that help them settle debts faster and more cost-effectively. These include skip-tracing which helps find people who have moved, and data modelling that prioritizes accounts and optimizes contact rates.

Debt Recovery Strategies: When and How to Engage a Collection Agency

A good debt collection agency will send demand letters to non-paying customers and then follow up by phone or in person. They will also provide reports to you on their progress, including how many attempts they have made and whether they have been able to secure a settlement from the debtor for a partial payment of the original invoice amount.

When choosing a debt collection agency, it is important to consider what your business needs are and to do some research. Look for agencies that specialize in your industry and interview them to see how they work with clients. You want an agency that has a strong track record of success and a good reputation in your industry. You will also need to be sure the agency is bonded and licensed, and that they adhere to the rules of the Fair Debt Collection Practices Act.