“Do you know the differences between personal and commercial debt collections? No? Then, this is the blog you must read.” Although in movies and books, debt collectors are always portrayed as rude and impolite people who chase the default payers, then the real scenario is really different. In fact, it is just the opposite because good debt collection agencies only have professionals who respect privacy as well as understand certain situations of the debtors.They are trained, considerate and are always focusing on preserving good customer relationships. It is always advisable that you choose an agency that deals with both the kinds of debts and take up all kinds of accounts.
However, you need to understand the differences between personal debt collection and commercial debt collection to get a clear picture of the same. Let’s dig in deeper into this!
The first difference between personal and professional debt collection is that the former has to abide by certain laws and regulations, while the later doesn’t have to do the same. There are certain strict guidelines as to the time limit of calling the debtors, the method of approaching them, etc. That is the reason why you should always contact a good and established debt collecting agency for effective collections.
A professional debt collector understands that even though a customer may owe you certain dues but you still might be interested in carrying on business with him or her. That is why, they respect them and take not-so-strict paths to get the dues back. On the other hand, retail debt collection doesn’t pay heed to these kinds of crucial things. This is why I personally always ask my clients to hire a debt collecting agency that deals with both kinds of accounts without any kind of delay. And the best part is that they take the payment on a contingency basis that is a fixed percentage of the dues they have collected. So, your money will also not get wasted like that!
The organizations taking care of and monitoring personal debt collection and corporate debt collection are also different, if you are not hiring an all rounder as I said. So, this is yet another point when it comes to the differences between the two.
Again, bankruptcy laws are different for individuals and for B2B ones. If you are afraid of the fact that the company or individual owing you money might declare bankruptcy, then you have to hire a collection agency that understands the laws and rules pertaining to both individual as well as corporate bankruptcy. So, do your research well before choosing a collection service agency.
Remember that retail debt collection and corporate debt collection are very separate things and are done by specific teams having different knowledge and trainings. What, do not know how to choose a collection service agency?
- Well, the first thing which you need to read is the ratings and reviews of the company. Yes, from that you can get a clear picture of how they work and if it is appropriate for your business so not.
- Secondly, you need to fix an appointment with the fixed collector and check if you are comfortable to work with him or not. Hire a reputable corporate debt collector who has good communication skills and negotiation skills. Otherwise, you might end up in a mess!
- You must also check if they handle both domestic and international accounts or not. If not, then they are not a pro! If yes, then go ahead with the company. Check if they use skip tracing method or not.
To know more about such agencies or to get tips, please read the rest of my blogs. I would be happy to enlighten you about these topics.
Author: Donald was earlier associated with a debt collecting agency and now is a regular blogger on collection agencies. To get tips on choosing a collection service agency, read his blogs thoroughly.