Collection Agencies are not Invoice Factoring Companies but the Rules of Engagement are Equally Important.
It is often assumed that invoice factoring companies and collection agencies have a similar role. The fact is they really don’t. Factors collect money now on accounts receivables due in the future; collections agencies collect money now on accounts receivables that have gone into collection because, for whatever reason, your customer has not paid. However, there are some similar considerations, such as reliability, credibility and experience, when it comes to picking a factor or an agency to use for collections.