It is almost never worth it to hire a collections agency in SaaS as it can destroy the relationship with the customer.
Collections agencies charge a significant percentage of the amount collected and often rely on threats rather than successful recovery.
In SaaS, the effort put into managing the collections process usually exceeds the potential rewards, making it more effective to focus on acquiring or retaining customers.
Instead of going straight to collections, steps like escalating internally, offering payment plans, or leveraging service access can be more effective in recovering payments without damaging relationships.