Is commercial debt collection something you are probably going to have to do in the next few weeks or months? Do you want to know how it usually works before you commit?
After all, you do not want to anger most of the businesses that owe you money to such an extent they never deal with you again.
What are the steps for hiring a commercial debt collection? -- First, you will need to hire a firm to do the collection for you. This can be done online, via recommendations from other businesses that have used them.
Next, you will sign a contract and agree payment. The payment will rarely be a set fee, but will be a percentage of the money owed to you they are able to recoup instead.
Once these steps have been taken, it is time for the commercial debt collection to begin.
How does the attempted collection take place? -- Any firm you hire will have standard letters they send out to businesses owning another business money.
These letters request payment, and ask for it to be made within a specific time frame. They are sent to every business, followed up by another letter around a week later to those that have not paid.
Phone calls will then be made to companies that are still refusing to pay, and these will increase over time.
Finally, if a company does not seem to want to pay, the Commercial Debt Recovery agency will usually institute legal proceedings against them. The latter is up to your discretion, however, as you may decide that would be detrimental to your own business.
In most cases, done this way, you will receive a substantial amount of the debt owed to you. Minus the fee you agreed to pay to the collection agency when you hired them.
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