Unpaid invoices are a burden to business firms. These debts can be the result of the customer having financial difficulties. They also stem errors in the company's account receivable process. Dealing with unpaid invoices can be exceptionally frustrating. Now, you don't want to stick around with outstanding debt. If the problem isn't solved as swiftly as possible, it becomes harder to recover lost payments.
In case there has been an issue with individual clients, or you have accumulated a backlog of bad debts, a commercial debt collection agency can help you with all your requirements.
Recover old debt
Typically there stands a higher chance of recovering the total amount of the debt within 30 to 60 days. It is still possible to recover the lost investment, but things can be exceptionally sophisticated.
Identifying issues quickly is a crucial factor, especially when managing debts. You can manage relationships, find solutions, and have your invoices paid with transparent processes in place. Hiring a third party collection agency should be a sound decision.
The agents here use industry expertise and access to credit information, helping you find other solutions. The final option is to collect an old debt through legal means.
The statute of limitations
It's usually best to try and resolve payment as quickly as possible. However, legal action might be essential if you no longer receive communication from the debtor's side. When considering legal recourse, the most important thing is to keep in mind the statute of limitations for commercial debts.
The statute of limitations sets out specific time limits on why you must take legal action to recover the debt. Also, the limits differ in every state and depend on the type of contractual agreement in place.
If these times expire, it's impossible to take legal action and recover the debt; this can be "time-barred" debt.
Avoid commercial debt accumulation
The accounts receivable team must have structured processes in place to identify any issues at an early stage. For example, if any business stops answering emails and calls to meet a deadline, you must escalate as quickly as possible.
A commercial debt collection agency will send out prompt invoices and communicate regularly with the clients. With clearly stated credit terms on your contracts and services agreements, it can go a long way in solving any future problems.
It also makes a lot of sense to do due diligence on new customers before offering them a line of credit. When creating a credit policy for the company, there are processes that should integrate into payment systems and procedures.
Why hire a commercial debt collection?
The collection of old debt can be sophisticated. However, a third party collection agency will apply innovative solutions to ensure the return of lost payments. Professional firms understand the unique nature of businesses and provide tailor-made solutions. Companies may be put off using commercial debt collection agencies. It might have a severe impact on existing relationships between clients.
It's essential to choose a firm that has a proven track record. Moreover, these firms understand the significance of clear communication and negotiation at every stage. By going through a relationship-based approach, payments are generally received much more quickly.
Final Wrap
Once you have decided to get help from the experts, they'll get to work as quickly as possible. An agency will create a recovery strategy that involves regular contact with the debtor to ensure a quick resolution. Each case will run a unique approach and may utilise emails, telephone calls, or face-to-face meetings with the debtor company.
Get in touch with our experts to meet all your business demands.
