Collection Services? Enable a Collection Agency

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Enabling a collection agency can be an effective way to continue pursuing overdue invoices, but it’s important to first consider whether or not this is the right move for your business. Collection agencies specialize in chasing down unpaid accounts receivable in exchange for a percentage of whatever they recover. They typically reach out to customers via mail and telephone to collect payments directly from consumers. Reputable agencies follow a host of governmental regulations and work standards while attempting to recover unpaid balances.

How long do collections stay?

If you’ve given customers multiple opportunities to pay their overdue invoices – including missed phone calls, bounced checks and failed online payments – and still haven’t received a payment, it may be time to turn to a third-party debt collector. Keep in mind, however, that this is a last resort and will likely have an impact on your customer relationships.

When to use a collection agency

Most experts recommend waiting at least 90 days before sending an overdue invoice to collections, but even after this deadline has passed, it’s possible that your customer simply isn’t going to pay. A reputable collection agency will have the tools and experience to contact your customer and arrange for payment. This link :

When selecting a collection agency, look for companies that are licensed and insured. Also, check your state’s offices of financial regulation and consumer affairs to make sure that the collection agency you choose follows ethical practices – such as not harassing your customers.