Where Should I Hire a Collection Agency?

My company has several overdue accounts. Two of the debtors are in the same city as my company, but one is headquartered across the country. Should I use a collection agency where the debtor company is located or from the town where my company is based?


Whether you choose a 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 late-paying company, hire a collection agency that's 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 you have past-due accounts from customers in multiple 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 collection agency at once -- you'll just end up confusing yourself and mix up which company is trying to collect which debt.