My boss wants me to cut costs. Do you think my collection agency will give me a discount?
Yes, a well established collection agency will offer a discounted rate if your company sends them multiple accounts or the balance is very high or the account is new.
Usually, there are 3 basic rules they follow to determine what rate your company will be charged:
Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.
Age of account. An account that is 60 days past due has a greater chance of being collected than a two-year-old account. Collection agencies that get paid based on how much they collect will not have a large incentive to work on older past-due accounts, much less offer you a discount on them.
Volume discounts. If you have many accounts to collect, you should be able to secure a discounted rate. For example, if your company has twenty five delinquent accounts for 25K that are less than a year old, it should get 30 percent to 35 percent off regular price, unless you entered into a different kind of arrangement.
Author: Takara AlexisThis author has published 28 articles so far.