Tuesday, November 3, 2009

Bad Debt Management

Outsourcing Bad Debt Management

Interactions between businesses and debtors can quickly become hostile if not handled with care, and in many cases it is wisest to make use of third-party bad debt management services. Outsourcing debt collection can make it much easier to extract money from debtors, as a professional agency will know which methods work and will be able to apply experience to individual debt situations and apply the right amount of pressure to make payment likely.

Bad Debt Management Fee Structures

When hiring bad debt management service providers, it is wise to choose professionals who offer a simple commission-based fee structure. An agency which charges by the hour or charges a monthly retainer fee can easily overcharge, as debt collection will not involve a consistent level of work or success. An agency which charges a percentage commission and has a high ratio of successful to unsuccessful outcomes can provide you with an affordable as well as effective service.