Disadvantages

• Costs Money: a trade off between collecting by yourself (your time) and paying a collection agency to collect for you. If you do not succeed in collecting, you and your staff have lost valuable time. A collection agency generally only gets paid if your debt is collected. So you will not lose any money generally if the debt is not collected, but if it is, you will have to pay some kind of commission to the agency.
  
• The Debt Collection Agency Interacts With Your Customers. It is very important that your debt collection agency helps you build a long term customer relationship by collecting the invoices in the same courteous and diplomatic manner you would. If the agency handles the situation very badly, then you may lose customers, but you must also think that the only reason the agency is involved in the first place, is due to the company not paying the money in the first place.
  
  

Thursday, August 28, 2008