At the same time, you want results, and quickly. Because you're handing accounts over to a third party, you want that party to be financially stable and creditworthy. In effect, you're extending credit to the agency, with the same expectations of payment as you have with your customers. Once you've agreed to work with a collection agency, be sure to provide them with complete contact information and a history of your attempts to collect payment. This will save the agency time and in the end will save you money.
Some credit agencies use an attorney-based recovery system, which can be costly.
You should only need an attorney's services if, as a last resort, the collection effort results in a lawsuit. Contact your state's collection agency administrator if you need information on licensing requirements. Make certain the agency operates under the Fair Debt Collection Practices Act, which prohibits debt collectors from using deceptive or misleading means in an effort to collect a debt. Before contracting with a debt collection service, ask to review sample dunning letters that are routinely sent to debtors. Make sure the language used accurately represents your company's expectations.