Friday, February 27, 2009

Bad Debt Management

Bad Debt Management Services

If your company is owed money on outstanding accounts by late-paying clients or customers, this can become problematic in terms of cash flow, yet by employing the services of a bad debt management company, you can help to ensure that there is a greater flow of incoming payments. Bad debt management covers debt collection services, as well as the buying of account invoices (factoring). A reliable and effective collection agency can provide you with both services, and recover money without a lawsuit being necessary.

Successful Bad Debt Management

Success in bad debt management depends largely on the effectiveness of your service providers’ methods. Simply writing letters to debtors, for example, is a process which you could easily handle internally, and would not be worth hiring collection professionals for. Personal contact, meaning face-to-face encounters, is statistically-proven to be more effective, as it is the intensity and frequency of contact and not personal threats which prove most effective in procuring payment.