The question is: should small businesses hire a Collection Agency?

Do you have unpaid invoices from clients?   If so you are not alone.  According to Sage 10% of most invoices are never paid or paid so late the company has to write them off, creating a total loss.

If you own a small or mid-size business you don’t have the time nor staff to collect unpaid invoices.

Begin with research

All collection agencies have the specialties they service.  Makes sure they cover or have worked in your industry no matter how large or small.

Check out their qualifications

I know this sounds cliché but seriously this is one of the biggest mistakes business owners make.   Make sure the collection agency you choose licensed and qualified to take care of your specific collection needs.  (Not all states require licensing, but most do).  Make sure they are licensed in the state you are collecting in.

Always check with the Better Business Bureau to be sure the one you have chosen has an A rating.

How they work for you

You are now turning over your debts to a collection agency but keep in mind they are still representing you and your company.   Make sure they have a professional reputation.

Be sure to ask exactly how they will handle your collections being a small company and let them share with you their process.   Some use “legal” tactics but they are not tactics you want to represent your company.     Make sure they use a software called skip tracing to find those that move out of state and change numbers.

What experience do they have working with your specific industry?   They should be able to share with you exactly what they will do with each unpaid invoice to represent you.  How do you feel now?  If good keep moving forward.  If not, stop and find another.

Do you have a Point Person?

Make sure you have a point person to work with so you can stay up to date on the progress of your collections.

Are they insured?

If they are professional, it shouldn’t be a problem but always make sure they are insured.  You want them to be able to back up what they say being insured.  You want to make sure your company is not responsible should the collection agency have show proof for errors and omissions.

Be prepared to pay

Debt collection is a service, but it can be such a wise choice to not invest your time on collections.   There are two types of collections.   One they charge you a fee upfront no matter if they ever collect or not.  The best option is one where they only charge you if they do a great job and enhance your cash flow by collecting the invoices in a timely matter.


MCA is a third party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect it! Why not try and re-coop some of your past due accounts with no out of pocket expense?