This year our headlines rife with bad news concerning our economy, the issue of coommercial debt collections will probably become a popular topic among business owners. Corporate, or commercial, debt collection agencies utilize methods enhanced by an exceptionally wide scope of technological advances that they combine with traditional detective work to track down debtors and recover what they owe a company. The aforementioned detective work involves investigative technique and talent, often going so far as to understand the psychology behind a delinquent account in order to make a collection. This has been helped considerably with the advent of the Internet, which makes tactics available such as computer surveillance, electronic research, private database access, electronic interception systems and a host of other commercial collection technologies, while complying with all local, state and federal regulations.

Besides settling business debt, commercial collections works closely with the creditor(s) in uncovering fraud while securing their delinquent receivables and bad debt. A company’s investigative and forensic techniques are especially helpful in exposing debtor deception. With identity theft on the rise, corporate debt collection agencies often have to play a very advanced game of cat-and-mouse to get debtors to pay, even employing skip tracer technologies. That said, it is important for an agency to remain professional and respectful of the law, never forgetting their main objective in locating a debtor or debtors and getting them to make good on their debt while maintaining positive relations between them and clients. To this end, reminder letters can may be designed and distributed on the agency’s company letterhead (or their clients’) in regards to outstanding accounts that can be paid discreetly, without telephone or other communications.

Although the bulk of corporate debt is brought on by fraud, identity theft and various other subterfuges, there are those debtors whose accounts have been placed with a corporate debt collection agency due to miscommunication between suppliers and customers, misunderstandings regarding accounts receivable, and other circumstances. Even so, most debtors typically fit into a specific category or type; this categorization allows corporate collection agencies to utilize the latest in proprietary organizational technologies and investigative tactics to locate debtors on a specific case-by-case basis. Once a debtor is located, a personal file can be compiled on the debtor’s financial condition. This technique often allows the agency to formulate the most effective collection method for a particular debtor, and can provide the client with a means to make future credit decisions that will avoid future run-ins with habitual debt offenders. Clients can also request that reports on account activity be made available to corporate credit bureaus.

After all investigative account management techniques have been exhausted, a corporate collections agency may turn to litigation of the debtor to collect an overdue debt. However, a good corporate debt collection agency’s first order is to collect the debt in their possession using the means they have at their disposal. This is generally achieved by employing a dedicated and knowledgeable staff that is familiar with the latest collection technologies their firm has in their arsenal. Once a team of globally tuned and experienced agents is coupled with the latest technological debt collection approaches and communication techniques, they and their firm’s reputation lies in their combined ability to acquire the debt in their possession in full, and present it to the client upon collection through a secure means of remittance.


One Response to “How Do Commercial Debt Collection Agencies Work?”

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