Tuesday, July 2, 2013

Your Options For Debt Collection

Image courtesy of nattavut / freedigitalphotos.net

If you have debt owed to you, you may be wondering just how you can go about getting the money.  Businesses that aren't able to collect the money owed to them can face a huge disadvantage as they may need those funds to further their business.  There are plenty of options of how to go about collecting the debt and most people will go in order, from the least aggressive to the most aggressive option. 

Do It Yourself
Many companies do not want to spend the money to hire a collection agency or collection attorney to help them get their money back.  These companies will try to send letters or call the person or company that owes money themselves.  While this can occasionally produce results, there are many cases where it will not.  When attempting to collect the money yourself does not work, it is best to turn to a professional with experience in the matter. 

Collection Agencies
The next obvious option is for your company to hire a collection agency to help you get your money back.  In some cases, this will work simply because it will be a wake-up call to the debtor or it may bring up more concerns about future credit ratings.  In addition, these collection agencies are experienced in these matters so they know the best methods to ensure you receive your money. 

Dedicated Collectors

If you have hired an experienced collection agency and are still having troubles collecting payments, there is a more robust collection program such as more letters or phone activity.  They will use their vast experience to come up with a solution that works for both your business and the debtor.  Even if the debtor is only able to pay part of the debt in these difficult cases, it may still be worth it with the current economy.  

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