PrintI'm always looking for ways to cut costs. Do collection agencies give discounts?
Yes, most collection agencies do offer a discount if your company assigns them multiple accounts or the balance is very high or the account is new.
Generally, there are three rules to follow to determine what rate your company will be charged:
- Balance due. If you have a delinquent account totaling $5,000 or more, your company should be able to get a discounted rate.
- Age of account. An account that is 60 days past due has a greater chance of being collected than a two-year-old account. Collection agencies that get paid based on how much they collect will not have a large incentive to work on older past-due accounts, much less offer you a discount on them.
- Volume discounts. If you have multiple accounts to collect, you should be able to secure a discounted rate. For example, if your company has five delinquent accounts for $2,500 that are less than a year old, it should get 30 percent to 35 percent off regular price, unless you entered into a different kind of arrangement.
