Hiring a Collection Agency to Collect Invoices

Hiring a collection agency to collect invoices is costly, but it can help small businesses get the payments they are due. The agency typically charges a percentage of what they collect, but the fee is usually only payable when they collect, so it can be worth it if your company has not yet received payment on an outstanding invoice.

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Before hiring a collection agency Incassobureau inhuren factuur innen, it is important to try and collect your invoice on your own first. This can be done by clearly communicating invoice payment terms to customers and following up with them if an invoice goes past due. It can also be helpful to have a streamlined process for creating invoices and recording transactions so that it is easy for customers to pay.

When the time comes to hire a collection agency, it is helpful to find one that has references from other clients that they have worked with in the past. A good agency will also keep you updated throughout the debt recovery process, letting you know how many contact attempts they have made with your nonpaying customer.

Debt collection companies can start pursuing old debt as soon as it is a few months late, but some might not be willing to pursue it after that point, depending on their business model and local laws. It is also important to make sure that the collection agency you choose has insurance in case they are unable to recover your debts. This is usually referred to as errors and omissions insurance and is often included in the collection agency fees.