Collection agencies can be a great tool to help your business recover past due payments. While some companies prefer to handle invoice collections themselves, it’s often best to outsource these tasks to a professional. It frees you up to focus on your core business operations while knowing that your debtors are being diligently contacted by an agency and that your accounts receivable will be in good hands.
Hiring a collection wat kan een incassobureau doen isn’t an easy decision, but it may be the right choice for your company. There are a few key questions you should ask any agency before hiring them to work for your company.
The Impact of Debt Recovery: How a Collection Agency Can Transform Your Business
Is the agency licensed in your state? Most states require collectors to be licensed in order to collect debt. If the agency is not licensed, it could put your business at risk if they violate any laws while working in your name.
Can the agency provide proof of insurance? Many collection agencies carry errors and omissions insurance in case they are sued by clients they represent. The presence of this insurance is a sign that the collection agency takes their jobs seriously and wants to protect their clients.
Are they experienced in your industry? Some agencies specialize in certain industries, such as agribusiness or home-based businesses. It is important to find an agency that is familiar with your industry so they can understand the intricacies involved when collecting on your behalf.
When to hire a collection agency
There are a few signs that it’s time to consider a debt recovery agency. A client that doesn’t pay their invoices is disruptive to your company’s cash flow, and if you’ve tried to contact them in the past without success, it might be time to hand the debt over to an agency that is experienced in collecting these types of accounts.