What is a commercial debt recovery and should you arrange to have one done?
If you own or run a business and have tens of thousands of dollars of unpaid debts that are owed to you, it may be time to think about commercial debt recovery.
Instead of arranging to have that commercial debt recovery done by someone in your company, however, it may behoove you to hire a professional commercial debt recovery service instead. Here are just a few reasons why.
What is a commercial debt recovery? -- This is when a company makes a concentrated effort to recoup bad debts still owing to them. In most cases, this will be by former customers and may have been going on for a long time.
How successful is commercial debt recovery? -- If done by you or someone in your company that is not trained in commercial debt recovery, the success rate is often quite low. After all, there are proven ways to get someone to repay a debt he owes. If you or your employee is not trained in them, it can make it very difficult.
With a professional service, however, they hire staff that is trained in and experienced in commercial debt recovery. They can often get debts repaid that are years older, and far faster than you ever could.
How much does a professional service cost? -- The cost of recouping Commercial Debt Recovery with a professional service depends on your initial agreement.
Some services charge an upfront fee for their service, while others only take a percentage of any money recouped. While a flat fee is sometimes cheaper, it also gives the firm less impetus to recover debts. With a company that is only getting paid with percentage of the debts that are repaid, however, they tend to work harder and are often more successful.