If you work for a company that spends many hours and a lot of money trying to get businesses that owe you money to pay, you may be considering hiring a company to collect the debt for you.
This is known as commercial debt collection and is often done by companies who do not have the time or staff to be able to collect debts themselves.
Before you do go ahead and hire a Commercial Debt Recovery service yourself, however, here are a few things you need to know about how it works.
How does commercial debt collection work? -- Once you hire a company to collect your debts for you, you will first need to send them your records on debts owed. This should include contact information for the people that owe it.
They will then begin to contact them first by letter and then by phone. If you want to start legal proceedings against anyone that refuses to pay, you can have them get the ball rolling on that as well.
How much does commercial debt collection cost? -- It depends on the company you hire.
Most companies will negotiate a fair price. Much of the time that will be a small percentage of the debts they are able to recoup for you.
If you do negotiate that type of contract, that will mean you only pay if debts are able to be recouped. If they are not, you are not liable for any fees.
How successful are commercial debt collection services? -- The industry standard is that they are generally successful 20 percent of the time.
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