For a business, collecting delinquent debts can be a difficult process, but it becomes particularly difficult to maneuver when collecting from another business. Many companies find it difficult to successfully collect what it is owed, while maintaining a working relationship between the two businesses. Walking this fine line has proven to be no easy task; many businesses instead outsource this process entirely, placing the responsibility to recover a debt on to a collections agency.
The Fair Debt Collection Practices Act (FDCPA) mandates that a business must handle the process in a professional manner, so it makes sense to leave it to one of these agencies. Businesses are better off by using a debt collections agency to recover debts owes, as it ensures a streamlined transaction.
Usually, the collection agency will inform the debtor via telephone of the amount owed. To follow up, they will often send out a written version of the details, as reminders usually help to speed up the process and ease any potential tension. The purpose of this is to mitigate the need for legal action, such as bringing in lawyers to negotiate a settlement. This can often lead to the relationship between the businesses to be severely strained.
Unlike other means of collecting debt, business to business negotiation can prove to be quite difficult. In order for it to work, the FDCPA has to be followed very carefully. Failure to do so can cause several legal issues for the collections agency. The use of an agency is particularly useful when dealing with larger sums of money, because things can become tricky and the money has to be paid before it is spent elsewhere. With repeated reminders sent out, and qualified negotiators doing the so-called “dirty work”, it is the best interest of both businesses involved to employ the use of a debt collections agency, rather than taking matters in to their own hands.
The goal of a debt collection agency is to keep the inter-business relationship intact, while holding up on our promise to recover the delinquent debt. We use the perfect mix of technology and experience to make this process a success. Our debt collectors know how to use tracking tools and persuasion skills to implement the best debt collecting strategies.
To get started today, call our toll free 1-877-680-6064 to speak with an associate or fill out the form above and we will contact you within 24 hours.