If you have old invoices that you need to collect, you can outsource the collection process to multiple types of debt collectors. One relatively new option is outsourcing debt collection to companies that crowd sources the work.

Essentially, this is like the "Uber" of debt collection. You send over your invoices, and the crowdsourcing company releases them over an app or a web-based portal to freelancers who then call your clients and attempt to collect the debt. Before deciding on this approach, you may want to ask a few questions.

What Is the Fee Structure?

Make sure you understand how the company is going to charge you. Does it charge based on the number of calls, amount collected, or some other metric. These companies may use different fee structures than more traditional debt collectors.

Traditionally, when you outsource debt to a third-party debt collection agency, you pay a flat fee or a percentage of the total amount collected. If you sell your debt to a legal company, they usually buy it for pennies on the dollar or in other words, a certain percentage of each invoice.

How Are the Collectors Compensated?

Even if it doesn't affect your fee directly, you may want to ask how collectors are compensated. In many collection agencies, the collectors earn commission on every invoice they collect. This helps make them more engaged with every call. In contrast, a crowdsourcing service may only offer a set payment for each call. Ultimately, you need to decide how that company's approach with its workers affects your bottom line.

How Are Collectors Trained?

A crowdsourcing company may require freelancers to pass some screening before making calls, but in most cases, their training procedures are not as developed as a traditional debt collection agency. Collection agencies staffed by full-time professionals often require collectors to attend and pass extensive training before they start making calls.

Are the Calls Monitored?

Most freelancers with crowdsourcing companies work from home, and as a result, calls may not be monitored. If you want recordings of calls for random quality checks or to ensure legal compliance, you may want to work with a collection agency that uses in-house employees or that has tools in place to monitor calls remotely.

What Script Do You Use?

If you want to keep your clients, you may want to review the script as well. That gives you insight into the process.

Can You Initiate Legal Proceedings?

Finally, you may want to ask the crowdsourcing company if they can start the process for initiating legal action on the invoices. If not, you may want to work with a law firm that can collect on the debts but also bring legal suits against clients who refuse to pay.