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Debt Collection
The advantages of using an agency are that:
- They have the time, expertise and resources needed for the job.
- It can be a fast method of recovering debts so will save you time.
- If the debt collection agency is polite and professional, you may retain the customer - assuming you want to. This is unlikely to be the case if you take legal action.
- The agency can instruct solicitors on your behalf if the customer still refuses to pay.
The disadvantages are that:
- the commission on the money recovered is typically 8 to 10 per cent for commercial debts
- you may lose the customer
- if the agency is heavy-handed, your reputation may be damaged