Partnering with a collection agency to get overdue debts paid can be a great way to recover some of the money you’re losing on accounts that are not current. Collection activities take a lot of time out of the day, and you can better serve your business by doing other things. Before you hire a professional service, you’ll want to know what your collection agency cost is likely to be. It’s going to depend on a number of factors.
First, you’ll have to consider the amount of the debt. There may be a percentage of the recovered money that you pay or a flat fee. You’ll also have to consider the age of the debt. Collecting on older debts can often take more time and thus requires extra fees. The company itself will have its own fee structure. Shop around when you’re looking for the lowest rates.