How does Commercial Debt Collection Work?

       

If you have been struggling to get companies that owe your company money to pay what they owe, then it may be time for commercial debt collection.

Of course, you can implement commercial debt collection measures yourself but, unless you have employees that are experienced in how to do that, it can be more trouble than it is worth.

This is why many companies hire a commercial debt collection service to collect their debts for them.

How does commercial debt collection work? -- Any company you hire will have slightly different ways of collecting debts than any other, but the general premise is usually the same.

First, you will need to furnish the service with information on the businesses that owe you money. They will then send a letter to each of these companies informing them they are trying to collect the debt, and with information about how to pay and who to contact if they have questions.

Once the letter is sent, they will make notes about anyone that pays and forward that information on to you.

People that do not pay will receive a second letter. If they do not pay after the second letter, they will usually receive several phone calls followed by a lawsuit filed against them. In many cases, the lawsuit will cause them to pay. If it does not, they will be taken to court and a judgement will be sought against them.

How much does a commercial debt collection service cost? -- Many of the services charge a percentage of the money they collect. That means it does not cost you anything for the people that do not pay and only a small percentage of the people that do.

As Commercial Debt Recovery services are cost-effective and efficient, they are often the best way to collect debts owed to you.