A commercial collections agency can be a valuable asset for businesses that are struggling to collect unpaid debts. These agencies specialize in recovering money owed to businesses and have a variety of proven strategies to achieve this goal.
One of the most common strategies used by commercial collections agencies is to send demand letters to the debtor. These letters are typically sent after an initial period of non-payment and demand payment of the debt in full within a specified time-frame. If the debtor does not respond or does not make payment, the agency may then make phone calls to the debtor and negotiate a payment plan. In some cases, the agency may also file a lawsuit to recover the debt.
In addition to the above strategies, commercial collections agencies may also use skip tracing to locate difficult-to-find debtors. This can be especially useful when the debtor has moved or changed their contact information. Commercial collections agencies also often have access to credit reporting and other tools that can aid in the collections process. This information can be used to assess the debtor’s ability to pay and to negotiate a payment plan.
It is important to work with a reputable commercial collections agency that is licensed and bonded. These agencies are regulated by the government and are required to follow strict guidelines in their collections practices. Additionally, it’s a good idea to work with an agency that has a good track record of success.
In Summary:
- Commercial collections agencies can help businesses recover unpaid debts by using a variety of proven strategies
- These may include sending demand letters, making phone calls and negotiating payment plans, and filing lawsuits
- Additionally, a commercial collections agency may also use skip tracing to locate difficult-to-find debtors, and may have access to credit reporting and other tools to aid in the collections process
- It’s important to work with a reputable agency that is licensed and bonded, and has a good track record of success