Almost every business is carrying bad business debt on their books. As the economy takes a down turn and the mortgage crisis has become such a burden on the economy business debt has increased.
In some cases businesses spend considerable money and resources just go get paid for their work and products. In many cases a business may find it is cheaper to write off a debt then spend the money to recover a debt.The problem of bad business debt affects businesses that service other businesses or professionals like doctors, lawyers and engineers. Currently it has reached a real crisis for those businesses that serve the building and construction industries. Many subcontractors have just stopped paying their bills altogether. All of which means your businesses financial future is threatened.
Getting paid and collecting past due debt is very expensive if you use a debt collection agency. In many cases these companies will have large upfront fees of thousands of dollars. There are additional costs for each delinquent account as well. All at a time when your cash flow and resources are low. The money that these agencies collect is sent to you 30 to 60 days after they are collected. In some cases you will receive less than 30 percent of the total debt owed.
Bad business debt is a real problem. As a business owner all you want is to get paid for your work. One possible option short of writing debt off is to use an online debt collection service. An online debt collection service normally does not have any upfront fees. You provide the collection agency with the past due account information and the agency then makes contact with the debtor via a mail campaign. The business pays a flat rate for the collection letters and the all payments are made directly to the business. Once the bad business debt is paid then the business owner contacts the collection agency and the collection effort ends.
Online debt collection gives the business owner control of the collection process. In most cases upon receiving a collection notice in the mail from a collection agency will motivate a past due business to make a payment. In many cases a single debt collection notice will result in as much as 30 percent payment on past due accounts. In many cases if people are able to pay they will do so. Most online debt collection agencies only collect from businesses. Collecting bad business debt can make the difference in whether your business will make a profit or even survive. Ignoring the problem could even lead to bankruptcy.