Understanding B2B commercial debt recovery
Sometimes, it gets to a point where a business needs help from a debt collection professional to recover debt from another company. Once you have exhausted all other recovery options, hiring an external collections agency is a wise idea, as commercial debt collection is carried out by professionals who use special resources and experience.
Why use a commercial debt collections agency?
What makes an agency more efficient at getting the debt you have been unable to recover? To begin with, this is what they do. They possess all the tools, strategies, and resources required to increase the chances of recovering your money. They also have legal aid to help you deal with any legal issues that may arise during the collection period. They know all the laws revolving around debt recovery. This means that you’ll be working with a team of experts specialised in this line of work. Besides that, they will free up your time and allow you to focus on other aspects of your business.
After how long should you involve a commercial recovery agency?
Hiring professionals is a great move, but it needs to be done at the right time. Evaluate your client, the relationship you have with them, and the account. Consider how old the invoice is. The older it gets, the harder it is to claim your money. However, if it’s still new, you may have a chance of solving the issue on your own.
Did you send follow up letters? Has the client gone under the radar? If they are still in contact, maybe all they need is some time. Ensure that you have tried all options before hiring an agency.
How do you find the right agency?
Getting recommendations is the first thing you should do. Do your due diligence by checking credentials and following that up with the Better Business Bureau and the Commercial Collective Agency Association. The agency should be licensed, insured and experienced in the commercial debt collection field. They need to keep you in the loop because although you want to avoid confrontation with the business, you still want to be informed about the process. It will also help if they are easy to communicate with.