No business wants to have outstanding receivables, but unfortunately, it is a common occurrence. If your business is struggling to recover an outstanding invoice from a customer, you may be considering commercial debt recovery. This process can be complex, so it is important to understand all of your options before you proceed. In this blog post, we will provide an overview of how to collect commercial debts and how can it benefit your business.
Internal debt recovery
Internal debt recovery is the process of recovering outstanding debt via in house accounts receivable team, and it is the most common way to get started in collecting an overdue debt. It usually involves payment reminders, follow up phone calls and final notice.
The decision to continue internal recovery or engage external debt collection methods will often depend on the amount of money owed, the relationship between the parties, and the ability of the debtor to pay. Sometimes, internal debt recovery may be the best option, while other times, it may be necessary to use external debt recovery methods.
Debt recovery lawyers
Debt recovery lawyers are legal professionals who help individuals and businesses recover money that is owed to them. This can include money owed for services rendered, merchandise purchased, or loans taken out. Debt recovery lawyers typically work on an hourly rate, which means they charge fees depending on how many hours and minutes spent on your case.
If you are a business owner or individual who is owed money, you may want to consider hiring a debt recovery lawyer to help you get the money you are owed. If you don’t provide very specific instructions, debt recovery lawyers are likely to start this process by a letter of demand, otherwise you may instruct to start with a complaint which could saves you some money.
Professional debt collectors
There are a number of ways to recover internal debt, but the most common and effective method is through the use of a professional debt collection specialist, also called debt collector. Debt collectors are professionals who are specifically trained in the art of debt recovery and are familiar with the procedures and regulations of the debt collection process.
Debt collection process generally begins with a demand for payment, which is followed by a period of negotiations between the debtor and the specialist. If an agreement cannot be reached, the specialist may take further actions to recover the debt, and legal action is one of the options on debt collectors’ panel.
While the internal debt recovery process can be costly and time-consuming to recover debt from a delinquent debtor, it is often a better option to outsource the debt collection to an external professional debt collection agency.
If you are considering taking action to recover serious overdue debt, get in touch with Xservice Debt Collection for an obligation-free assessment. Our services cover Melbourne (VIC), Sydney (NSW), Brisbane (QLD) and Perth (WA), if your debtors are in these states, contact us to discuss your options.