Whether you choose a commercial collection agency based in your company's town or your debtor company's town depends on how many different late accounts on which you are trying to collect.
If you are dealing with only one late-paying company, hire a commercial collection agency that's in the debtor company's area. The local agency may have dealt with the debtor company before and know the company's finances and the best way to collect from them. If they have had no dealings with the debtor than there is no advantage.
If you have past-due accounts from customers in multiple locations, hire a national collection agency, or one that is located in the same city as your company to ease the reporting process. It's rarely smart to deal with more than one commercial collection agency at once -- you'll just end up confusing yourself and mix up which company is trying to collect which debt.
As a rule, there is no discount for using a local agency -- either one that is local to your company or the debt dodger. Typically, you will be offered a discount only if you are contracting to have multiple late accounts collected. - 15224
If you are dealing with only one late-paying company, hire a commercial collection agency that's in the debtor company's area. The local agency may have dealt with the debtor company before and know the company's finances and the best way to collect from them. If they have had no dealings with the debtor than there is no advantage.
If you have past-due accounts from customers in multiple locations, hire a national collection agency, or one that is located in the same city as your company to ease the reporting process. It's rarely smart to deal with more than one commercial collection agency at once -- you'll just end up confusing yourself and mix up which company is trying to collect which debt.
As a rule, there is no discount for using a local agency -- either one that is local to your company or the debt dodger. Typically, you will be offered a discount only if you are contracting to have multiple late accounts collected. - 15224
About the Author:
You need to hire a Commercial Collection Agency when you have Business to Business accounts. A full service Collection Agency will help you recover the most money.
