When to Use a Collection Agency

We are often asked, “When should I place an account for collection?”

 

It usually is when you are unable to collect payment from your customer. They either don’t have the money to pay, they don’t want to pay, or they are not happy with your product or service. Placing an account with a collection agency is usually the quickest process. Collection agencies can usually tell whether or not a customer will pay within 30 days.

Why not place an account directly with an attorney?

Using an attorney should be your last step. Most attorneys will send a demand letter for payment and wait 30 days for a response. The process is generally longer than using a collection agency and usually more expensive.

 

If the collection agency is unsuccessful in collecting the account, then it is time to place with an attorney. Most collection agencies have a network of attorneys and can act on your behalf.


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