Early Intervention In Debt Collection | Ramblings of an e-trader

Wednesday 1 October 2008

Early Intervention In Debt Collection

My friend, Jason, has just filled a post in a new company. The problem is that one of his new tasks is to receive bad debt. Jason told me the six figure amount in confidence. I was not shock about the amount since it is a million dollar business concern but what shocked me was that this debt has been dragged on for at least fifteen years!

Jason was discussing with me about drawing up a schedule so that the debtors would follow the fixed schedule in paying their debt but I told him that it would be better for him to leave this business to a professional Debt Collection agency.

Some people may think this is unnecessary but it's exactly this problem of being afraid that business relations would be jeopardized by chasing debt that this company's bad debt has been around for fifteen years without moving. I actually know that feeling, coming from a family-orientated business and that’s exactly the reason I told Jason of the services of a debt collection agent that charges just a flat fee for their services.

What struck me, reading the website of American Profit Recovery, is their stress on early intervention. It’s so true. The longer we delay our debt collection, the more difficult it will be. In business, the amount of debt we are able to collect may determine our profit or loss.

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