If your company is owed money by other companies and you have been unable to collect, you will want to get into the world of commercial debt collection.
What is commercial debt collection and how does it work?
What is commercial debt collection? -- This is when a company that is owed money by another business makes attempts to collect it. This can be anything from sending letters to filing legal cases against the company if the amount owed is large enough.
Who does commercial debt collection? -- Some companies have someone on staff that does it. Unless that person has been specifically trained in debt collection, however, this is not always as successful as the company would like.
How does commercial debt collection work? -- Once you hire a company, your commercial debt collection immediately goes into high gear.
The first thing an agency will do is contact all the companies owing you money and ask them to pay. If the payment is not forthcoming within a set period of time, another letter will be sent or a phone call will be made.
The second contact with the company will usually threaten legal action.
If the money is still not paid, legal action will then usually be kicked off with the filing of a court case against the company. At this point, many companies will pay at least a portion of the debt they owe.
If payment is still not made, a court case will often solve the problem as a judge will usually rule against the company owing money. They will then have a set period of time to repay the debt before the court institutes consequences against them.
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