Working with a bill collector

Written by: Jean Marquit

It’s an all-too-often scenario: you extend credit in good faith to a customer or client and then at some point your customer stops making payments. When this happens, you’re out time, money, and in some cases, merchandise. While you can try to collect payment yourself, turning to a professional bill collector can be a better way to retrieve what you’re owed. Contacting bill collection specialists and trying to arrange payment can cut significantly into time you could be spending helping your business grow.

Bill collection and debtors

Bill collection is a profession in which someone else – usually from a collection agency –contacts your customers and clients to try to persuade them to pay what they owe. Bill collection services exist to save you time. You turn over the account information about the customer or client, including contact information and how much is owed, and the bill collector takes the information and tries to get the account paid.

By transferring the bill collection burden over to a professional, you save yourself the hassle of tracking down debtors just to get payment for what you’re legally owed.

What a bill collector does

Bill collection services are responsible for attempting to get payment for unpaid bills and debt. Bill collectors try to locate customers (often using information that you provide to them) and then notify them of the debt. From there, the bill collectors receive payments and make sure that they’re applied to accounts.

A collection agency can also notify credit bureaus about a customer's inability to pay which can negatively impact their credit score. Additionally, bill collection services can start proceedings to repossess goods and merchandise, as well as begin disconnecting services.

If you feel overwhelmed by the prospect of collecting money that’s owed to you, you can employ the services of a bill collector. Make sure you understand how the payment process works. Some collectors are paid only if they collect and usually take a percentage of the amount they've collected. Others buy your accounts from you at less than face value and keep all the money they recover.

Shop around and compare prices and services from multiple bill collectors before you make a decision about a bill collection agency. You should also look for a company that is professional and works according to federal guidelines, and make sure that you understand and agree with the responsibilities of the collector you ultimately select.

To start the effort of retrieving the funds you’re owed, complete BuyerZone’s free request for professional collection services price quotes and get matched to agencies in your area.