A client of mine recently asked me to comment on a billing company that offered a fee collection service for about $1.50 per transaction.
My response was the result of many years of collecting fees myself, employing someone to do it for me and contracting billing companies. The decision always depends on your personal situation. But my comment to him was as follows:
Costs look good. Are they reliable? Do they follow up payments that bounce? In what way? What would the collection rate be?
Costs are only good if you do it monthly. If you do it weekly, the monthly cost multiplies by four.
I said this because we think we are winning by charging weekly and using a billing company. The only problem is that we are quadrupling their fees that they collect over the month as opposed to the monthly once off fee.
Note that I also asked what the collection rate was. This means ... what percentage of money that you are owed, will actually be sent to you? Is it 100%? (Doubtful) Is it 99%? (Pretty good) Is it 95%? (Find someone else)
Do your sums then decide.