If you’re a business owner, you’ve probably wondered what commercial collection services are. These services are often provided by a debt collection agency that specializes in helping business owners recover past-due accounts.
A professional collections company for small business can help you manage your accounts receivable and recover past-due accounts while protecting your business’s good name and reputation. Commercial collection services are also highly cost-effective because they’re geared toward businesses, not individuals.
A commercial debt collector first contacts a business owner or the department head that handles the bill payments. The commercial debt collector will then call on the debtor periodically to figure out a payment plan. Despite what you might think, hiring a commercial collection agency doesn’t necessarily mean you’ll avoid legal action. If your debtor is still evasive, a commercial collection service may visit their office to make the case. If that’s the case, they will also keep vital records and abide by the regulations governing the industry.
The best commercial collection services will invest in people to help you collect past-due monies from businesses. Many of them also offer designations, including Certified Commercial Collector (CCC). In addition, commercial collection service staff will take part in ongoing professional development opportunities, such as attending conferences and seminars by the Credit Institute of Canada. And unlike consumer-facing collections, commercial debt collection services do not move debt collectors from one client to another.
Invoices are created within days after a sale. Depending on the method used, invoice delivery may take a day or two. The average time for an invoice to be paid is 30 days. Payments may be received by mail or by check, both of which can take up to five days. If your invoice is delayed, your business may be at risk of losing cash flow and creditworthiness. A commercial collection service may be the best option for your business.
While business debt may be a small percentage of GDP, it is still significant enough that it can be difficult to collect, and commercial collection agencies can help you do this. Many businesses cannot afford to lose a client because of bad debt. That’s why it’s crucial for businesses to hire a commercial collection agency. These companies are not employees of small businesses or credit card companies. They work as third-party contractors to small businesses, and only get paid if they collect the debt.
Debt collection agencies can improve your chances of obtaining the money you owe by helping you understand your customer’s payment habits. If you’ve been sending reminders about a late payment, but the debtor hasn’t responded, it’s time to use a commercial collection service. If you’ve tried to contact the debtor, they might try to contact your family members or associates to see if they’ll be able to reach the person in question. Commercial debt collection agencies can even show up at your home if you’ve already been trying to collect the money yourself.
For the best results, you should use a licensed, bonded commercial collection service. In most states, commercial collections services are required to be licensed and bonded. These agencies have gone through rigorous application processes and have earned their credibility in the industry. If you’re interested in hiring commercial collection services, make sure the agency is certified by the Commercial Collection Agency Association.