How B2B Debt collection works?
Debt collection is a very tedious process. Not as easy as it sounds. Not at all.
If you are too lenient to debtors, you may incur great loss. Other side being too strict, hampers the relationship between you and the debtor.
Thus ,it's best to have professional agencies , so that we play your game and you sit back and focus on your business.
Let me walk you through the steps involved.
Payment Demand:
At first , the agency tries sending reminders and politely requests the debtor to clear their debts. If this doesn't go to success ,they can initiate the legal collection process by sending a demand letter. The demand letter contains following contents:
Name and business of both the creditor and the debtor
Debt collection notice with details about due payments
Information about the debt
A timeline within which the debtor should clear their debt, and a notice that failure to do so shall be the beginning of a litigation process.
Litigation on debt recovery:
If the above process doesn't yield fruitful, the next step to tackle such debtors is to take law in hand, a minor step at first. Here the agency initiates an official debt recovery process by filing a small claims court case. Albeit, this is often enough to compel the debtor to pay , it is quite expensive.
Repeated Contacting and investigation:
To some arrogant debtors who don't give a damn to the above process, this process will be applied. Here repeated calls, trying to get in direct touch with debtors to know the reason for delay and insisting on payment is done.
Certain investigation tactics are also used to get to know about the debtor's whereabouts,income, hidden money etc, is done to facilitate negotiation with the debtor.
As I said before, it is an extremely cumbersome and complicated process with a lot of risks and law coming in picture.Its best to handover such tasks to a well experienced and well trusted agency to rest assure that debt collection flow goes in a calm and secured manner.
Will catch up with other such fact filled blogs soon.
Thank you
~Shrestha S Bharadwaj.
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