A common question people ask about collection agencies is what type of business utilizes them? Some larger corporations have an in-house collection agency but will also hire an outside collection agency to handle the accounts. Small businesses can benefit from a collection agency by having the collection agency work on a contingency fee basis. A contingency fee basis means the collection agency would only get paid on accounts that they collected on. Small businesses get hit hardest when debtors become delinquent on their accounts. Small businesses rely on all of their clients to send in payment so that they can stay in business.
Larger businesses also benefit from hiring a collection agency. An example of a larger business that would benefit from utilizing a collection agency is fitness center chains. Businesses that have locations all over the country should hire a national collection agency that is licensed and bonded in all 50 states. Collection agencies can help them to collect monthly membership fees from delinquent customers.
Another type of business that utilizes collection agencies are hospitals and medical practices. Hospitals and medical practices often have issues with patients making late payments or not making payments at all. This can take up a lot of time for the office workers. A collection agency can save time and money by following up with patients, resubmitting insurance and working with the patients to get paid. Whether you own a lawn service company, you are a landlord, retail; wholesale, doctor’s office or work in any other industry, utilizing a collection agency can be beneficial to your business.
