Glossary
What is debt collection?
Debt collection is recovering money that's owed, either by the business itself or through an agency.
Collection agencies usually step in once an invoice is well overdue and often charge a share of what they recover. Following up early as your own business keeps it friendlier.
Example
After 90 days of no response, a business refers an invoice to a collection agency.
In Australia
The ACCC and ASIC debt collection guideline sets out fair practices, including reasonable contact hours and frequency.
General information only, not legal or financial advice.