Thursday, September 24, 2009

Bad Debt Recovery

What is Bad Debt Recovery?

Most businesses use accounts as their primary means for collecting payment from clients, while small businesses are able to offer cash transactions due to the smaller size of payments in general. While accounts offer convenience for business and client alike, problems arise when account holders do not make payment as agreed and start to grow bad debts. Bad debt recovery entails contacting debtors and reminding them that payment is overdue. This can also involve giving written warnings of impending legal action, should payment not be made following initial contact.

Nationwide Bad Debt Recovery

If your business does not have operations all over the country yet you have debtors who are based in many different areas, you can use a third party debt collection service to make contact with debtors easily and extend your reach. Bad debt recovery is often most successful when utilizing some form of face to face contact between contactors and debtors, and this is not always possible when handling collections internally, using company resources.