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Bad debt is an occupational hazard when you are running your own business. When you find it impossible to realize the amount that you are owed, you need to engage the professional services of a debt recovery agency.

What is the method that these debt recovery agencies follow so that they can recover your debt where you have failed? Actually, the process is deceptively simple. They contact your debtors and try to persuade them to pay you the amount that they owe. Though simple, the method does work. This is probably because of the fact that you have been pushed enough to contact a debt recovery agency. This imparts seriousness to the matter and most small debtors are ready to settle.

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Is It Time to Collect?

One of the most crucial decisions on your part that will affect the entire debt recovery process is the timing of turning the debt over to a business collection agency. You can turn over a bad debt to a collection agency as soon as only thirty days after the last due date of repayment. Of course you can wait a year or more to make this move, but not only will you be wasting time unnecessarily, but also your chances of recovering the money decreases significantly. A rule of thumb is that longer the time it takes to recover the debt, greater is the chance that you may not get paid at all.

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