Collection Agent

Hiring a Collection Agent

The credit system, whereby clients or customers receive items or services upfront and pay monthly installments, is open to abuse by debtors. It can be tricky to handle debtors who do not pay their accounts yet hiring a collection agent who is experienced in the field of debt collection can help to ensure that collection endeavors are successful more often than not. A collection agent can contact debtors with persistence, in such a way that it is likely that payment will be elicited.

Collection Agent Payment

Different collection agencies will charge fees according to different systems – some prefer to charge a monthly, quarterly or yearly flat rate, yet the disadvantage with this system is that it will not take into account the amount of work performed, and will not reflect the success rate of collection endeavors. It is in the best interests of the collection agency hirer to use an agency that works on contingency, taking commission on successful collections, as this will not cost money even when collections do not result in immediate success.