If your business has outstanding balances that haven’t been paid, it may be time to bring in the experts. But it’s important to remember that any agency you select will take a percentage of what they collect, which can add up quickly. There are many factors to consider when choosing a collection agency.
What is a debt collector called?
Hesitations due to cost may deter businesses from signing on with an Kosten incassobureau inschakelen, which can delay the collection of overdue accounts. The two most common fee structures include a contingency fee and a flat rate.
A contingency fee structure means the collection agency will only receive payment if they are successful in recovering the debt. This type of arrangement is often negotiable, particularly for accounts with a significant amount owed.
Flat rates are typically only used on smaller claim sizes, such as unpaid invoices. These cases can be more difficult to recoup, as the agency may need to use automated letter campaigns, overseas collectors or predictive dialers. These services may also require more work by the actual collector, which can lead to higher collection fees.
A reputable collection agency will abide by state and federal laws. For example, the CFPB recently changed rules on how debt collectors communicate with consumers, including limiting phone calls to seven per week and requiring them to identify themselves. The agency should also have a good track record with the Better Business Bureau and the Association of Credit and Collection Professionals.
