Will a company's credit rating be adversely affected if a debt collection agency was called in to recover outstanding money?

It depends on the company to whom the debt is owed and how overdue the debt is.

To be listed on a company's credit file, a debt must be at least 60 days overdue, however not all company's list collection activities with a credit bureau. So although a debt may be more than 60 days overdue and a collection agency may have been called in to chase the outstanding account, the collections activity may not appear on a company's credit report.

However, if the company to which the debt is owed opts to proceed with legal action, this event will automatically be listed on the company's credit report.

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