How Does Commercial Debt Collection Work and Who Does It?

 

If you have been having trouble collecting commercial debts that are owed to you, it is probably time to hire a Commercial Debt Recovery service.

 

A good service can often recoup a large percentage of the debts owed, while making it less stressful for you and for your employees.

 

How does commercial debt collection work? -- If you hire a service, most have similar ways they go about collecting the money owed.

 

Their first step will be to send a letter asking for payment of the money owed. If the money is not paid, a second letter will be sent to the businesses that haven't paid. That letter will be followed up with several phone calls.

 

Finally, if debts are not paid, or if an installment plan is not worked out, the businesses that have not paid will then be served with a lawsuit. In many cases, this is the point at which the money is paid. If not, the business that do not pay will then be taken to court where, in most cases, a judgment will be rendered against them.

 

How much does a commercial debt collection service cost? -- The costs of these types of service differ depending on the one you hire. Get quotes from any service you are considering before hiring one. That way you will be sure you were given a competitive price.

 

In most cases, however, the amount you pay will not be a set fee. Instead it will be a percentage of the money the service is able to recoup for you.

 

This type of fee structure is to your benefit as it means you will not pay a fee for the companies that do not pay.

 

Just be sure the percentage a service charges is in line with the ones from other similar services.