4 Things to Check Before Deciding on a Collection Agency
When you’re in business, there are fun parts and there are parts that will frustrate you … Defaulters obviously belong in the second category. Few things are more frustrating than having clients that don’t pay, even after you’ve reminded them of an open payment. When it’s time for the next step, it can be hard to choose a good collection agency – you don’t want to accidentally pick one that will take ages to help you or will make you pay a hefty fee for their services. That’s why it’s important to check out these 4 things before you decide on which collection agency you’ll work with!
1. Read the whole contract, front to back
It might be the most obvious thing – but not everyone reads the fine print of their contracts! Take your time reading the whole thing and make sure you understand what it says so you don’t have any nasty surprises afterwards. Make sure you know what you’re signing up for!
2. Know what fee a collection agency has
There are different ways collection agencies operate. A collection agency (Dutch: incassobureau) can make you pay for everything they do for you, no matter how successful they are in collecting the money. They can also work with the ‘no cure, no pay’-method, which means if they’re unsuccessful in collecting your owed money, you don’t have to pay their fee. When you call in a collection agency (Dutch: incassobureau inschakelen) this service is super handy. You know the agency will work really hard to get your money, so they also make their fee.
3. Know the start-up period
If you’ve dealt with your debtor not paying for a while, you probably want your money back fast. You don’t want to wait a few more months until the collection agency has some time to take a look at your case! Check with your agency if they choose a start-up period or if your case gets opened quickly after you sign the contract. The sooner they start the collection (Dutch: incasso), the sooner you might get your money back …
4. Check when you’ll get paid out
Knowing that your defaulter paid your collection agency can make you very happy. But that might turn into annoyance really fast if your payment terms state that you’ll be paid out e.g. three months later. Always discuss the payment terms of your collection agency; ideally you’re paid out the same month they collect your money.
We hope you can find a suitable collection agency soon and we also hope they can collect your money soon!