Commercial debt collection can be a tricky business. If creditors practice too much leniency, the debtor might not find the urgency to fulfill their financial obligations. Being too strict or aggressive can lead to loss of business clients or partners, or worse, litigation. Brennan & Clark LLC has had forty years of experience managing business collections, and is wary of certain mistakes that could ruin the chances of debt recovery.
Some of these mistakes are the following:
· Making false statements and threats: In debt collection, maintaining honesty is imperative. The creditors should avoid lying about the amount owed by the debtor, misrepresenting deadlines to purposely add more fees and interests, and pretending to be a lawyer or a government representative with the intent to intimidate. Making false threats on confiscation of property as collateral or about having the debtor arrested or imprisoned is also an offense.
· Ignorance of regulations: Depending on the state, several rules and regulations stipulate legitimate debt collection attempts. For example, there are statutes of limitations, or the length of time allowed to collect receivables.
· Failure to consider the cost of debt recovery: Before starting a debt collection process, especially if it involves hiring a debt collection agency like Brennan & Clark LLC, an initial assessment of its expected costs to the company should be accomplished. If the expenses that would be incurred are significantly higher than the amount owed, taking another course of action would be wiser.
Brennan & Clark LLC provides its expertise to help businesses achieve well-defined goals for their collection process, evaluating all internal procedure, implementing improvements, and guaranteeing better results on collection. Subscribe to this blog for more articles about the industry.
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Image source: securitek.gi
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· Making false statements and threats: In debt collection, maintaining honesty is imperative. The creditors should avoid lying about the amount owed by the debtor, misrepresenting deadlines to purposely add more fees and interests, and pretending to be a lawyer or a government representative with the intent to intimidate. Making false threats on confiscation of property as collateral or about having the debtor arrested or imprisoned is also an offense.
· Ignorance of regulations: Depending on the state, several rules and regulations stipulate legitimate debt collection attempts. For example, there are statutes of limitations, or the length of time allowed to collect receivables.
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Image source: pinterest.com
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Brennan & Clark LLC provides its expertise to help businesses achieve well-defined goals for their collection process, evaluating all internal procedure, implementing improvements, and guaranteeing better results on collection. Subscribe to this blog for more articles about the industry.
