Thursday, April 1, 2010

Bad debt Management

Efficient Bad Debt Management

Businesses often have over-stretched human resources tending to multiple administrative tasks, and in matters such as bad debt management it can be far more efficient to use specialized bad debt management services provided by a third party. A debt management agency can attend to collection of various types of debt, from past-due accounts to bad checks, and may also be able to provide litigation services in the event that further legal action is required in order to obtain unpaid debts.

Cost-Effective Bad Debt Management

It can be costly to use a debt management agency which charges rates per the hour or a flat-rate monthly, as the number of bad debt situations that need addressing can vary. This system also does not take into account the fact that not all collection endeavors will be successful. For cost-effective bad debt management, it is wisest to use a debt collection agency which works on commission, receiving a fixed percentage of all successful collections.