Due to a number of reasons, a business may consider outsourcing debt collection to a collections agency. When customer accounts are at least 90 days past due and all other means of collecting on delinquent accounts have been exhausted, or if a business does not have an in-house collections department, placing claims with a collections agency is an option.
A collections agency collects debts on behalf of a third party. It can send collection letters and make regular phone calls to consumers to secure a payment commitment or to work with them on a payment plan. A collections agency that specializes in commercial or business-to-business collections may be a better fit for a company who needs to collect on delinquent accounts of other businesses, rather than one that specializes in collecting on consumer or individual accounts.
Ad Astra Recovery Services, Inc., a Kansas-based collections firm, is an affiliate of the Association of Credit and Collection Professionals. Ad Astra Recovery Services provides debt-recovery solutions to businesses nationwide.