An Overview Of Commercial Debt Collection
If you are a business owner that has found yourself in dire straits financially you may be confronted with commercial debt collection for the first time. There is no need to be afraid you find yourself in the situation but it is important for you to educate yourself on how this process works. In this guide, we will breakdown exactly what commercial debt collection and how it works so you can feel confident in your knowledge through this process.
What Is Commercial Debt Collection
Commercial debt collection is a type of debt collection that specializes in debts that are owed by corporations or businesses rather than individuals. This type of debt collection can involve companies of all sizes. It can also include companies from any industry. They are regulated by a different governing body then consumer debt collection is. The regulation is lax in comparison so that debt collectors that operate in the commercial sector are able to use a far wider range of tools and strategies.
How Does Commercial Debt Collection Work
Almost all of the communication that occurs in the debt collection industry is done through the phone. The debt collector will contact the owner of the business that owes the original debt once they have located them. They will then make regular phone calls with the debtor and make negotiations until they can reach an agreement or a settlement. Most of the time the end result is a payment plan that both parties can agree to. This can vary from pay in full at the time of the call to far more lenient monthly payment plans.
See also Commercial Debt Recovery for more information.
