What is a Commercial Debt Collection Agency
A commercial debt collection agency is an agency that specializes in recovering debt from corporations or commercial businesses. This type of debt collection agency usually does not deal with any type of consumer debt and only specializes in the areas of commercial debt. These types of debt collection agencies are highly-skilled and much more technical than regular collection agencies. These collection agencies are monitored closely by the law and must follow every law in regards to their collection efforts because the debts are usually large amounts.
These collection agencies frequently have to present their debt collection efforts in a court of law. Commercial collection agencies must do detailed research before they can contact any debtor. The research includes payment history, skip tracing, background checks, and any other pertinent information in relation to the debt that the company is trying to collect.
How are Commercial Collection Agencies Regulated
The body that governs a commercial debt collection agency comes from each individual state. Some states require commercial collection agencies to be bonded and license and some states do not. When a commercial collection agency is required to be licensed and bonded this means that they have to submit an application, provide proof of bonding, provide financial disclosures, and provide payment of licensing fees. There is also an organization that gives commercial collection agencies credibility that puts their clients at ease.
This agency is known as the Commercial Collection Agency Association. To become a member of the Commercial Collection Agency Association is a tough application process because of the organization’s prestige. The organization does not have any governing power over non-members but it a benefit for a commercial collection agency to become members because of the organization’s clout that it carries in the industry.
When trying to obtain any type of licensing in order to perform commercial collection services the commercial collection agency usually works closely with an attorney to ensure that they adhere to all of the state’s regulations. Commercial collection agencies are continuously training their employees so they can keep up with any new changes that can impact the commercial collection industry. Most commercial collection agencies try to specialized their collection efforts into a specific industry such as technology, transportation, or finance. This is a bit of advice for any business or company that deals with very large transactions. If you are a business that deals with large debts, especially on the corporate level you should always seek an experienced collection agency that possibly specializes in your industry when it comes to debt collection.
Why Use A Commercial Collection Agency
Commercial collection agencies are definitely needed because many businesses have accounts with other businesses that are long overdue. Most businesses do not even know how to recover these debts that are not paid on time. This is where the commercial collection agency comes into play and they can help a company figure out a plan and initiate a plan to get the payments that are owed to them by another business.
Most businesses try to find one commercial collection agency that fits their needs and the two develop a good working relationship. This positive relationship insures that the commercial collection agency is always looking out for the company’s best interest and that unpaid accounts receivables will be received.
If you are a business owner small or large and you have provided services to another business and the business has not paid their bill. You should definitely contact a commercial collection agency to see what steps that you need to take to get that overdue accounts receivable paid. There are solutions out there that can prevent your business from going out of business due to unpaid debt.