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Debt Recovery6 min readFebruary 18, 2025

When Should You Outsource Debt Collection?

When Should You Outsource Debt Collection?

Many businesses try to handle debt collection in-house before seeking professional help. While this works for occasional late payments, there are clear signs that it's time to bring in experts.

Sign 1: Your team spends more than 5 hours per week on payment follow-ups. That time is better spent on sales, delivery, and growth.

Sign 2: Debts are aging past 60 days. Recovery rates drop significantly after this point — professional intervention at 30-60 days yields the best results.

Sign 3: You have a large portfolio of small debts. Chasing fifty KES 10,000 invoices is inefficient in-house but economical for a collection agency working on contingency.

Sign 4: Customer relationships are suffering. When your sales team is also doing collections, tensions rise. A third-party agency creates professional distance.

Sign 5: You lack legal expertise for escalation. Professional agencies know when and how to initiate legal proceedings, saving you costly mistakes.

With Faways' No Win, No Fee model, there is zero financial risk in trying professional collection. You only pay when money comes in.

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