What is Commercial Debt Recovery and How Can You Get It Done?

 

If you have a list of businesses that owe your company money, you should be getting involved in commercial debt recovery.

 

What is Commercial Debt Recovery, and how can you get it done? It is far easier than it may sound. Especially if you hire the right company to do it.

 

What is commercial debt recovery? -- This is the act of attempting to recoup money from other businesses that have not paid your outstanding invoices. These debts can be weeks old, months old or even years old. You can put the wheels in motion to recoup any of them.

 

How can you get it done? -- Hiring a debt collection agency is usually the best way to go. This is due to their employees being highly skilled and experienced in recouping debts from businesses.

 

They know how to write letters, they know what to say when they make phone calls and they understand what the law allows them to do. They are also usually far more successful at recouping a larger amount of a debt owed than you or your employees would be.

 

How is commercial debt recovery carried out? -- This usually starts with a letter to the business asking for payment of the outstanding debt. If this does not happen, it will be followed up by phone calls, another letter and the threat of legal action.

 

Should the debt still not be paid, it is then up to the debt collection agency to decide if it is worth taking the business to court. In many cases it is.

 

The agency will earn their money by charging you a percentage of any of the money they recoup. This can be as high as 30 percent, but it still allows you to recoup a large percentage of each debt.