Friday, February 27, 2009

Debt Purchasing

Debt Purchasing is One Recovery Option

There are a number of different courses of action which you can take when your company is owed outstanding debt. Debt purchasing, whereby outstanding debts are sold to a collection agency for a reasonable amount, is a viable option, whereby you can receive at least some of the money which you are owed and leave it to professional collectors to take care of collecting money. A lawsuit is another option, to which you may proceed if a collection attempt is unsuccessful.

Debt Purchasing or Collection on Commission

While you can sell a debt in its entirety to your debt collection agency, you can also opt to enlist collection services and use a system whereby you pay commission only on amounts which are successfully recovered. The benefit of this option is that you do not have to pay money for services which are unsuccessful, and there will be added incentive for your debt collection agency to make a successful collection.