June 2018 update: Compared to the rest of the world, American small businesses get paid fast: According to a Global Business Monitor report, U.S. businesses wait an average of just 23 days for payment, nearly half the average wait time of some global respondents. Yet, 23 days can still be way too long for any business to wait.
Forty-one percent of small businesses in the U.S. reported that invoice payment collection is their largest cash flow management challenge. A quarter of respondents went as far to say they suffered from bad debt in 2017, which averaged around $73,000 for small business owners.
Some businesses take out loans or factor their invoices to help manage cash flow, but this may not always be feasible. In the same study, 61 percent of respondents said they struggle to get financing due to paperwork and the loan application process. Hiring a collection agency can often be an easier and more realistic method to get the money you're owed.
Collections agencies will charge you a percentage of the outstanding payment, and you won't have to worry about collecting money like in some invoice financing agreements. Debt collecting agencies also offer more advanced tracking methods to ensure you'll get paid. Working with the right collections agency can help you avoid bad debt and help improve cash flow management.
See our complete list of the best collections agencies below.
When you're a business owner, you provide services and products in exchange for payment. But when customers fail to pay bills on time or refuse to pay at all, your business suffers. Rather than wasting your time and resources trying to recover the money owed to you, hire a collection agency to do the legwork.
From skip-tracing to online portals, there are a range of features and offerings to evaluate before signing up with a collections agency. To help you find the right one, we evaluated more than 25 collections agencies to come up with our best recommendations. We highlight key features, price points and the best services available.
Rocket Receivables Summit Account Resolutions and Aspen National Collections are our best picks for businesses. You can read about each below.