When should I refer a debt to a debt collection agency? The answer to this question depends on your own internal credit management procedures. It is well known within the business that the older a debt becomes the harder it is to collect. So sooner rather than later is suggested. We believe a debt should be referred to a collection agency as soon as you feel the debtor is not responding positively to your internal collection efforts. Look for these tell-tale signs that you have a recalcitrant debtor:   The debtor has failed to honour, two or more promises to pay. Three or more