As the amount of delinquent debt and the sheer number of debtors refusing to pay have risen, so has the demand for commercial collection agencies.
In this weak economy, more and more businesses are trusting their unpaid debt to these agencies because they simply do not have the available resources for successful internal debt pursuit.
Why are these agencies so much more successful in the pursuit of delinquent debt than individual businesses? Why is more money recovered by this process of outsourcing than by keeping the efforts in-house? The logical answer is that commercial collection agencies are privy to a number of resources that make collection of delinquent debt more realistic.
Not only do they have dedicated manpower and the experience and skill in the industry; they also possess many tools of the trade that aid in debt recovery.
Asset Investigation - In the business of debt collection, it is essential to know what a debtor has available, in terms of liquid assets, cash flow, and expenditures, as well as hard assets which can be seized as collateral or sold to pay delinquent debt.
Through asset investigation, these agencies can better determine a debtor's ability to pay and use that knowledge to aid in negotiations.
Another way commercial collection agencies pursue delinquent debt is by sending a representative to meet the debtor, face to face.
Because phone calls and letters are somewhat impersonal, most debtors are able to ignore such contact.
However, when a collection agent appears at one's place of business to discuss the possibility of repayment, the issue becomes much more real in the eyes of the debtor.
Private investigators are also tools employed by these agencies.
Regardless of an individual's determination not to answer calls and attempts not to be found by bill collectors, private investigators can root them out and help the agencies in their pursuit of the delinquent debt.
In fact, these private investigators do not usually stop with discovery of the debtor's location; they typically determine wages, debt, payments, and other personal information that can be helpful to collectors in pursuing the debt in question.
This makes private investigators an invaluable resource for these agencies.
Because these agencies possess the resources and the knowledge to more doggedly pursue delinquent debt, commercial collection agencies enjoy greater success rates than in-house debt collection for the majority of businesses.
In order to get finances back in order, businesses experiencing difficulties recovering delinquent debt may wish to consider this alternative.