Wednesday, May 27, 2009

Collection Service

Using a Professional Collection Service

When account payments are not settled on time, businesses may require the assistance of a professional collection service in order to successfully recover unpaid debts. A collection agency which specializes in recovering unpaid debts can collect account payments, money for bad checks and other forms of debt on behalf of a company or individual. A collection service provider may be able to offer international collection services, contacting debtors who are based overseas.

The Cost of Using a Collection Service

The cost of using a collection service depends on the payment system used – a commission-based system, whereby a set percentage of successfully recovered funds will be kept by the collection agency, is generally best for all parties. A commission of between twenty and thirty percent is generally accepted as competitive, although some collection companies may charge collection fees as high as fifty percent of the recovered amount – it is best to use a collection agency which charges reasonable fees and can offer experience in the field.