What are the pros and cons of outsourcing collections efforts?

Answer by  John (9008)

The advantages of outsourcing collections efforts are cost and aggravation. You can avoid the bother of trying to collect, and usually collections firms can do so more cheaply. The disadvantages are that you lose control, and you could face civil liability if the agency that you hire violates the law.

Answer by  Amom (701)

Outsourcing an outstanding debt is good and they'll handle the legal side. You'll have to pay and be careful they can impact your company image.

Answer by  Emr (698)

The most obvious benefit of outsourcing collections efforts is the cost. Overseas workers, especially in India and Russia, work for lower wages than in the United States. The downside is that it is hard to find workers who can speak and understand American English.

Answer by  Patrick (37)

The number one con is that you will not collect the entire outstanding balance due. If you are fine with that arrangement, then the pros are that you save time.