Collection agencies are valuable allies with an important role to play in the fiscal life of every commercial business. They’re excellent fixers of specific debt problems, although they’re not a cost-effective alternative to daily in-house A/R management — not with a 25% contingency fee (or higher). That’s an expensive way to manage garden-variety receivables!
Third-party collectors are your go-to helpers when in-house “chase” routines come up empty-handed. Think of them as relievers in your bullpen. They can save some games you thought were lost. A strong, experienced agency will bring you dollars you’d never have gotten on your own, so build a relationship with the agency/agencies of your choice. You won’t be sorry.
You can go to the Web and vet the wide variety of local and national collection agencies for yourself. But while you’re doing that, here are two of my go-to collection allies:
In Canada… Collection Group of Canada
In the U.S…. Commercial Collection Corp. of New York