Moon Twp, PA (PressExposure) July 17, 2009 -- You know for a fact that the money is in big corporations and that's the reason why we make it a point to do business with them. But currently it seems that even these large corporations are likely to pay on time. Long gone were the days when companies make payments even before their accounts fall due. Though it may sound unfair to generalize majority of these big corporations for there are still those clients who really pay on time, there has been a growing number of companies having more and more delinquent paying clients.
If you have grown tired of collecting past due accounts or if you do not wish to undertake the process of recovering these unpaid debts, you can transfer the task of collecting to debt collection agencies. Don't worry about only having a meager amount to be collected. These collection agencies would accept even small business debts and are charging very reasonable rates. Some are even expanding their services and are offering accounts receivable management.
The collection services offered by a collection agency go through several phases. In the initial stage, sometimes only a letter or two is given to these delinquent payers to coax and gently nudge a slow-pay. If they are unsuccessful by means of collection letters, they then employ their collection professionals to work on the matter. A collector will work closely with you as sort of an extension of your staff, giving updates on the status and ensuring the recovery of the claim. When letters and collection calls do not bring in positive results, their network of lawyers specializing in collections and collection litigation come into the picture and will provide you with the necessary representation if you require it. These agencies also entrust the help of collection bureaus to ensure recovery of claims.
Be very selective though in choosing your collection agency for it will have a significant impact on your business reputation. While price is an important factor to consider in your selection process, you also have to take a look at a collection agency's services, reputation, and recovery rates that will be applied to the collected account. Ensure that the agency complies with the Fair Debt Collection Practices Act and Fair Credit Reporting Act. Choose a collection agency that can represent you in a professional manner.