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The Debt Collection Process – The Latest Trends

If your business is owed money by customers, then taking action to recover it is absolutely essential in order to maintain a steady cashflow for your business.  Whether the money owed to your business is from customers in the UK or overseas customers, taking advantage of the services of an international debt collection agency can take the worry off your shoulders.  Hiring a debt recovery agency will not only ease your concerns, it’s also likely to save your company both time and money in the long haul. 

An international collection agency will have a team of experienced professionals who are experienced at using the debt collection process to recover funds in all parts of the world and will take over the recovery process for you, leaving you free to concentrate your time and energy on running your business. 

Whereas, traditionally, a professional debt collection firm would send agents to companies or individuals in order to secure the payment owed, this is no longer necessarily the case.  Nowadays, technology enables payment notifications and customer statements to be sent to the customer via their preferred contact method, such as email or SMS.

 Modern methods of debt collection now use software apps and debt analytics to flag debts based on a range of factors, including total amount due, credit limit, credit history of the company or individual owing money.  This ability to segregate defaulting customers has made the debt collection process easier. 

Once the customers have been segregated, the information in the database can be used personalise a plan to collect the funds owed according to different customer categories.  With separate files for each customer, it’s easier to determine what the next step should be in order to secure the money owed.  When it comes to disputes, the debt collection agency should review the customer’s credit history before initiating a dispute in order to avoid loss of customer goodwill if possible. 

As a business owner, it makes perfect sense to hire a debt collection agency to recover money owed to your business.  After all, you hire professionals for most services your business requires, such as signwriting, website development, legal and accounting activities, because this represents an investment in your business.  Hiring a professional debt collection service to recover money is also a wise investment in your business.

If you’re thinking that the fees involved would be at risk if the debt is not recovered, some of the more successful professional debt collections agencies offer their services on a contingency basis.  This means that the fees are only payable if the money is recovered – it’s a no-win, no-fee services.  Any national or international debt collection agency that offers its services on such a basis must be fairly confident in their ability to recover the debt successfully on behalf of your business.