What usually happens during commercial debt collection?

 

If you are planning on hiring a company to do Commercial Debt Recovery for you, you will probably want to know what to expect before they start.

 

Information about debtors -- Your first task will be to send information about each debtor and the money they owe to the commercial debt collection service now working for you. They will use this information to contact each debtor asking them to pay.

 

Letters mailed to every debtor -- A letter will be sent to every debtor by the commercial debt collection service asking for payment. If it is not made, another even stronger letter will be sent asking for payment and threatening legal action if it is not made.

 

Phone calls -- Phone calls will then be placed to each person owing your company money asking them to pay. The service will work with those that are willing to pay so that a payment schedule can be set up. For those that do not pay, the next step is usually legal action.

 

Legal action -- If this is the course you wish to take, the commercial debt collection service will then file a lawsuit against each debtor. They will make sure the debtor is served with the court papers, and make sure they know the time and date they must appear.

 

At this point, if the debtor decides to pay, a payment schedule will be organized if it is needed.

 

All of this will usually cost around 15-20 percent of the money that is collected from debtors. It is a good system as that means you do not have to pay for debts that are not recouped.