Does it matter where a Commercial Collection Agency is located?
Whether you choose a commercial collection agency based in your company’s town or your debtor company’s town depends on how many different late accounts on which you are trying to collect.
If you are dealing with only one past-due account, you could hire a commercial collection agency that is in the debtor company’s area. The local agency may have dealt with the debtor company before and know the company’s finances and the best way to collect from them. If they have had no dealings with the debtor than there is no advantage.
If you have bad accounts from customers in many locations, hire a national collection agency, or one that is located in the same city as your company to ease the reporting process. It’s rarely smart to deal with more than one commercial collection agency at once — you’ll just end up confusing yourself and mix up which company is trying to collect which debt.
As a rule, there is never a discount for using a local agency — either one that is local to your company or the debt dodger. Typically, you will be offered a discount only if you are contracting to have multiple past-due accounts collected.
Filed under: Business