If you own a business, there's fun parts ... and not so fun parts. Debtors that don't pay their bills are clearly one that belongs in the second category. When you've reminded your debtor of their outstanding fee multiple times, it's time to take the next step: hiring a collection agency. But not all collection agencies are equal - there are for instance different ways of paying them. In this article, we talk about the things you need to check before deciding on which collection agency you're going to hire. 

1. What kind of fee do you pay? 

    It's very important to know what you're signing up for. That means you have to read the whole contract, front to back. One of the things you really need to check is the fee of the collection agency. There are different ways agencies can operate - sometimes you pay a starting fee and a monthly fee, but there are also agencies that work with the 'no cure, no pay'-method. This one is particularly handy for business owners, because you don't pay the collection agency (Dutch: incassobureau) until they are successful in getting your debtor(s) to pay. That means they'll work extra hard and you don't have to pay in the rare case they're unsuccessful. 

    Unfortunately, there are also dodgy collection agencies that charge you for everything they do or take forever to finish your case, while you keep on paying monthly fees and other fees. Make sure you don't fall into this trap! Check out the google reviews of every agency in your area so you pick the right one.

    2. Check the start-up period

      If you've decided to hire a collection agency (Dutch: incassobureau), you've probably already tried to contact your debtor a few times. That means you probably don't want this to drag on for a few more months ... That's why we recommend you to take a look at when the agency will start working on your case. Ideally, they start working on it the same week you sign the contract. The sooner they start, the sooner you might get your money back! 

      3. Know when you'll get paid out

        If your collection agency is successful in collecting your money, it's nice if you have it in your account in a few business days. Often though, payment terms are a bit less fun - sometimes you're only paid out months later. Annoying! Make sure to check out the payment terms in your contract. 

        Good luck with finding a good collection agency! We recommend you to check out the agencies in your area with a simple Google search. If you for instance live in Groningen, a simple search of 'incassobureau Groningen' should help you out. Don't forget to check out the Google reviews so you know what other people think of this agency. If it's a good one, you'll see it soon enough in the reviews!