There are two ways a company can involve themselves in commercial debt recovery. Both can have good results, but one tends to recoup more money than the other.
How does commercial debt recovery usually work? Read on to find out.
Commercial debt recovery done in-house -- One way of recouping debts that are owed to you by other commercial entities is to pay an employee or employees to do it in-house. While this can save you money over paying the fees of a collection agency, unless the employees are highly trained in debt collection, the chances of them being particularly successful are low.
Commercial debt recovery done via a debt recovery agency? -- The second way, and usually the most successful, is to pay a debt recovery agency to contact the companies owing you money and request that they pay.
This involves paying them a fee, or a percentage of the money recouped. As their employees are highly trained in Commercial Debt Recovery, however, this is often the option that bears the best results.
Which option should you choose? -- If you want to have the best chance of recovering most of the delinquent debts owed to you, it makes sense to hire an agency to do it.
Not only will they go after the money itself, but they will also start legal proceedings against companies that refuse to pay. These legal proceedings can make sure the company ends up in court, or they can make sure their bad debts are reported to credit agencies.
In many cases, once these two options are threatened, companies that are able to pay the money they owe will do so. Those that are not will then be dealt with by the debt recovery service you have hired as well.
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