Using a collection agency: what are the benefits?

by Maisie

When customers fail to pay within the agreed payment period, it has a negative impact on the financial health of your business. Chances are, you won’t have enough time to adequately collect unpaid invoices. And the older the invoice, the harder it becomes to get it paid. Hiring a collection agency can be very wise to still get the receivables paid. After all, a collection agency is experienced in getting outstanding invoices paid. In this blog, we list some of the benefits of using a collection agency (Dutch: incassobureau)

Quick collection of outstanding debts

Hiring a collection agency leads to quick collection of your outstanding invoices. A professional knows the best techniques and how to impress a debtor, which can increase the pressure to make payment. Receiving a letter from a collection agency makes more of an impression than a letter from the organization itself. After sending a collection letter, telephone contact is soon more than enough to get the debtor to pay. In addition, a collection agency looks at the situation objectively, which allows for a better assessment of the situation and a solution-oriented approach when calling in a collection agency.

Relationship with the customer

Naturally, you want to maintain a warm relationship with your debtor and lawyer (Dutch: ondernemingsrecht advocaat). The expertise of a collection agency is to monitor customer satisfaction. By using this expertise, you create a win-win situation: the outstanding debt is paid and the customer relationship is maintained well or even improved. A collection agency uses different communication channels and techniques to reach the target audience and make payment. They choose the best medium that suits the target group: contact by phone, mail or post. In addition, the collection agency advises on what you can do to ensure that invoices are paid on time in the future. Hiring a collection agency helps you improve your customers’ payment behavior.

Focus on your own organization

Using a collection agency helps you focus on your organization. You do not have to chase your unpaid invoices yourself. The moment you hand over the file, the assignment and the invoice to the collection agency, they know how to handle it correctly. They take all the work off your hands. After all, the primary focus of a collection agency is collecting unpaid invoices and you yourself have breath to focus on other matters.

Collection agency costs: no cure no pay

Transferring a case to a collection agency does not involve any additional costs for you. There are no start-up or handling costs when you hire a collection agency that works on a no cure no pay basis. The costs are charged to the debtor when the collection is successful and complete. If nothing is collected, you will not be charged any fees.

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