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America's Commercial Collection Agency
Bad Debt Recovery
AAB is a sophisticated commercial collection agency that specializes in bad debt recovery. Commercial bad debt recovery is more time sensitive than consumer bad debt. Companies or corporations can become insolvent very fast and every day that passes reduces the odds of a successful bad debt recovery.
Time is the biggest enemy of bad debt recovery. If an account is placed for collection while the company is still operating then there is a chance of recovery. If you wait until the company closes and the secured creditors move in, there is probably little hope of recovery and you have a bad debt.
One factor that affects bad debt recovery is whether you have any personal or corporate guarantees if the debtor company is a limited entity. In a majority of instances once the limited company is defunct then the debt collection becomes a write off to bad debt. However, if you have a guarantor with personal assets then your odds are increased for a fruitful bad debt recovery.
Bad Debt Recovery Timing
Bad debt recovery timing is the sign of a good credit manager or business owner. Listening to your gut instinct and watching for bad debt warning signs will give you the signal when it is time to place an account for bad debt recovery.
Bad debt warning signs include unreturned messages, long winded excuses, industry rumors, NSF checks, employee layoffs and a litany of other information that is bad. A way to confirm your suspicions is a quick credit check, which will tell you volumes about just how bad things are. Intuition is usually right and one of the most powerful indicators in bad debt recovery.
Do not derail your Bad Debt Recovery
During the bad debt recovery process we make formal demand to the debtor for payment of their debt. Often a debtor will run back to you, eager to negotiate payment terms on their debt. While we don’t recommend refusing cash, it is in your best interest to refer them back to the agency letting them know that the agency is responsible for their bad debt recovery. The debtor is trying to use a strategy of divide and conquer and when you shut the back door the agency collector maintains control over the bad debt recovery.
Find out more about Bad Debt Recovery
Bad debt recovery is a general term that covers a lot of areas concerning bad debt. This entire site is primarily about the different aspects of bad debt recovery.
The best way to find out more about Bad Debt Recovery is to contact an AAB collection professional today or request a quote on the services we offer for bad debt recovery.
