Companies that deal with debtors often turn to a commercial debt collection agency rather than attempting to recover the debt on their own. This allows them to focus on every aspect of the business, while the professionals deal with the debt.
Late-paying debtors will typically fall into one of three specific categories. These include:
• A debtor who wants to pay the bill, but cannot, due to real financial issues
• Debtors preferring to juggle or delay payments
• Debtors who are willing to go to great lengths to avoid their payments
For the business owner, the first two categories provide hope. It may be possible that the company can ask the debtor to pay a partial payment, or pay the debt by a specific date. However, the last category often requires a professional commercial debt collection agency that provides serious action at recovering the funds.
The most successful businesses are those that turn to commercial debt collection agencies early on. This ensures that all the bills are paid promptly, and that any arrears payment is fully recovered.
There are significant benefits to using a collection agency that follows state law when recovering debt. These benefits include:
• Do Not Get Personal – Because the professional collection agency is a business, they are not personally wrapped up in obtaining the debt. They can be firm, direct, and offer a variety of solutions without harassing.
• Send Demand Letters – A demand letter sent by a collection agency carry significantly more weight than one cent on the company letterhead. Along with phone calls, the professional can send a series of demand letters escalating in intensity until the customer responds.
Turning any commercial debt over to a professional collection agency is usually a positive, but last, resort. This is because the agency will collect the debt, and take a high percentage portion of whatever is recovered. For the company owner, this is often beneficial because a portion of something is better than no money at all.
Commercial debt collection agencies offer a viable solution for companies eager to stay afloat when struggling with debt recovery issues from their debtors.