The number of businesses going insolvent or being closed down yearly alarming. Among other reasons, unsettled bills from debtors rank as the biggest cause. It is a common business practice for businesses to give out products or offer services on credit with faith that their debtors will repay within the agreed time. However, in most cases, this doesn’t happen and your hired debt collectors fail as well.
There is a new breed of debt collectors that get all your money back through because of the following advanced recovery processes.
First Party Collection
The account receivable system and accounting managers in your company will determine how fast you get your money. An efficient and qualified in-house system supplemented with the services of certified and licensed dent collectors will help you track and manage your debts better. The debts are monitored closely to ensure that they are repaid in time.
The new set of debt collectors has investigators who track business or financial activities of your debtors. With a comprehensive profile of your debtors’ accounts, you will get the chance to follow up with your debtors thus getting your money back and having no lags or unresolved receivable accounts. You can learn more and get advice on fast tracking of debts on GGRInc.com.
Use of qualified and licensed field investigators
While your in-house team does a lot to minimize issues in your accounts receivables accounts, there could still be debtors taking long to repay. In such cases, these debtors have to be investigated for a clear understanding of the cause of the accruals. The investigators will scrutinize the debtors finances then come up with agreeable payment terms. This is a great debt management strategy that will cost you much less later on in expenses.
Investigation of Debtor’s assets and liabilities
Investigation into the debtor’s accounts of assets and liabilities could reveal hidden treasures that can facilitate financing of the debt. This is also a great way of determining if the debtor has the capacity to pay back within the required time.
Debtor’s credit background and reports
All business owners and accountants understand that debtors and potential customers have to be vetted before they are given goods or services on credit. A customer’s credit score will give you all the information and what you may expect from the customers. Despite this understanding most businesses fail to scrutinize this. The best debt collectors will give insights into the credit score and histories of current and future debtors. With this information in the business records, bad debts will be reduced or cut off from the business budgets.
Appropriate legal action
In some instances, investigations into debtors reveal their inability to pay back the debt. Companies like GGR have qualified legal counsel and may offer pre-qualification of the case to determine the suitability of litigation. If there are losses, then litigation may be abandoned. Otherwise, liens are filled so that you may use assets to repay the owed amount.
In conclusion, businesses are forced to operate on tight budgets and may lay off staff when things get tough as a result of unpaid debts by debtors. In efficient debt collectors are to be shunned. Companies should always get professional debt collectors capable of investigating debtors and finding ways of getting your money back at fair rates. Their comprehensive solutions should guarantee your money back.
Jasper Higgins is an debt manager and financial analyst who’s worked with the financial Times and also in some of the Fortune 1000 companies. He is part of the team at GGRInc.com where he specializes in professional debt collection.