The Pros and Cons of Outsourcing Your Debt Collection Services

Many businesses are starting to feel the pressure to step up their debt collection efforts, especially now during the aftermath of the Covid-19 pandemic. In a perfect world, customers would pay their bills on time and in full, but unfortunately, this is not the case and many companies are left battling with their debt collection efforts. This raises an important question: Should your business outsource their debt collection services to a professional debt collection agency? Or would it be better to keep their collection services in-house?

We know that this is an important decision for you to make, so Affinity Debt Management has compiled a list of some of the pros and cons so you can be better informed to make this decision.

The Pros of Outsourcing your Debt Collection Services

1.Save time, Money and Resources 

As a business owner, we’re sure that you are well aware that time equals money and know how quickly resources can be exhausted. Outsourcing your debt collection services to a professional debt collection agency has the potential to save you a vast amount of time, money and resources. The incredible time and money saving opportunity that outsourcing will offer you, will allow you to better focus on revenue generating activities that are core to your business, which will ultimately allow you to accelerate the growth of your business.

2.Better Debt Collection Rates

A professional debt collection agency like Affinity Debt Management will be able to help you increase your debt collection success rates. A professional debt collection agency has an advantage when it comes to debt collection as they are highly qualified and experienced in dealing with difficult situations. When it comes to your in-house staff, they are often not well enough equipped to deal with the various challenges that come with debt collection. 

3.Preserve Client Relationship 

Outsourcing your debt collection services, will provide you with the opportunity to distance yourself from the negative stigma attached to debt collection. Your clients will be communicating with your outsourced partner, rather than communicating under the name of your business, allowing you to avoid any negative interactions with your clients. Outsourcing your debt collection services will ensure that your business can maintain a positive relationship with clients, which will likely promote better client retention. 

The Cons of Outsourcing your Debt Collection Services

Debt Collection Agencies Charge a Fee 

As expected, debt collection agencies do charge fees for their services. Fees vary per debt collection agency and can sometimes be pricey, depending on which agency you choose to partner with. A great benefit of partnering Affinity Debt Management is that we offer competitive pricing models depending on each individual clients’ needs and preferences:

  • Seat or Hourly Rates

We offer our clients competitive hourly or seat rates that accommodate their needs and budgets, allocating dedicated members of our collections team to chase and recover outstanding debt.

  •  No Recovery, No Fee Service

The No Recovery No Fee debt collection service can be used where a business has unpaid invoice debts for goods or services supplied to an individual. As part of this service our team will:

  • Provide an initial call to the debtor advising of debt owing and attempt to set up a payment arrangement;
  • Thereafter, write to the debtor on your behalf with a formal letter demanding payment within a set period;
  • Negotiate terms of repayment or settlement with the debtor on your behalf.


Affinity Debt Management is dedicated to providing niche services to all our clients that results in cash flow optimisation from accounts receivables. If you are exploring the possibility of outsourcing your debt collection services, the professional team at Affinity Debt Management is ready to assist you. Please feel free to contact us.

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