Jun 27, 2018

When a Business Hires a Collection Agency

So far this year, we’ve talked about how the commercial debt collection process works. We’ve provided information on the importance of hiring a commercial collection agency, signs you need to hire an agency, best practices for your business, and other helpful information. If you’ve been convinced of the importance of hiring a commercial collection agency, do you know what the process is like? This article will present some details on what to look for when hiring a commercial collection agency and what the process is like.

When to Hire an Agency

As your business grows, the chances are that your customers’ debt amount will also grow. Rather than spend time and resources trying to get what’s owed to you, it’s much more effective and efficient to hire a commercial collection agency to take care of that debt so you can concentrate on other aspects of your business. Using a commercial collection agency can be help you grow and keep your business profitable. Some agencies charge more the older an account is, so it’s important to pick the most cost-effective time to deal with a customer’s debt.

The Hiring Process

There are a variety of important information needed when you’re about to hire a commercial collection agency. Some of the most important information includes records of your customers’ invoices and debts with your business. This is important because it informs the collection agency of how long the debt account is past due. Commercial collection agencies usually follow a debt delinquency timeline which determines the procedures they use to collect debt from your customers. After a certain amount of time, the customer’s debt account will go to court and the commercial collection agency will work with court members to return money that’s owed to you.

The following is the minimum information that you should include to the commercial collection agency (

  • The debtor’s correct contact information (name, address, phone number)
  • The debtor’s or spouse’s last known occupation and phone number.
  • Whether mail has been returned from the debtor
  • Summary of disputes
  • Date of last transaction, order or payment
  • Nicknames and aliases

When You Get Your Money

Commercial collection agencies usually either charge a flat monthly fee, charge per letter/call, or a commission or percentage based on factors of the account they’re working on collecting. Other collection agencies charge commission percentages based on how old the debt accounts are. You can easily find out the expected amount your business will be charged when you ask for a quote or send in your application to the desired commercial collection agency. To place an account with Prestige Services, Inc., you can submit your information via our account-placement form.

For more information on figuring out the best time to hire an agency, see our recent blog post: Signs You Need to Hire a Commercial Collection Agency.


We are an international collection agency and service the entire U.S. as well as foreign countries. In addition, we represent clients from any country outside the U.S. Let us know how we can help you today! Contact us here »

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