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hire a collection agency

A collection agency is a third-party that can collect past-due invoice payments on your behalf in exchange for a fee. Agencies use databases to track nonpaying customers and contact them via written notices, phone calls and even in-person visits to retrieve payments. They can also report debt to credit bureaus and, if necessary, take legal action to recover unpaid invoices.

It’s important to hire a hoe werkt incasso agency that’s bonded, licensed and adheres to the Fair Debt Collection Practices Act. In addition, find out how many years of experience the agency has and whether it specializes in a particular industry or type of business. Ideally, your point of contact at the collection agency will keep you updated on every step in the debt recovery process and let you know when they are able to settle with a customer for full or partial payment.

Navigating Unpaid Invoices: How a Collection Agency Can Assist Your Business

Depending on your situation, you may want to consider hiring a collection agency when an invoice has gone past due more than 90 days. At this point, the likelihood of collecting a full invoice amount drops dramatically. Additionally, if a customer’s payment methods have repeatedly failed—like bounced checks or rejected online payments—it could be a sign that they no longer intend to pay.

A good collection agency will work on a contingency basis—meaning you don’t pay unless they are successful in collecting your overdue invoices. It’s always a good idea to try other debt collection strategies before taking this drastic measure with your customers, though.

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