What is commercial debt recovery and who usually does it?
If you own or run a company that is owed hundreds of thousands of dollars from delinquent customers, you may be interested in commercial debt recovery.
What is Commercial Debt Recovery, and who usually does it? In many cases, it depends on your specific situation.
What is commercial debt recovery? -- This is nothing more than a company going after debts that are owed to it and attempting to get them paid. Sometimes this is successful, sometimes it is not. There are, however, ways to help ensure commercial debt recovery recoups most of the money owed.
Who does commercial debt recovery? -- Some companies have specialized staff that do the debt recovery for them. Others pay a service to do it, and either pay a flat fee or give the service a percentage of the debts recouped.
Which your company chooses to do is usually dependent on if your company has staff that is qualified to do it, or if you are likely to get a better result from paying a service instead.
Reasons to pay a service -- Unless you do have staff that are successful at recovering debts, paying a service is often the better choice.
A commercial debt recovery service has highly trained staff that know what to say and how to question people that still owe your company money. They also have a track record in recovering debts.
The cost of using a company may seem to be high but, when you factor in that most of the time they can recoup much more money than your own employees can, it often makes more sense to hire one.
Particularly if you hire one that is paid with a percentage of the money that is recouped, rather than with a flat fee.