B2B Debt Recovery Services - What is B2B Debt Collection Process

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Kenstone Capital Debt Consulting
B2B Debt Recovery Agency
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WHAT IS A B2B COLLECTION PROCESS
An effective B2B process can help a company have
substantial working capital and good cash flow
at all times. Before understanding what is B2B
collection process, lets take a quick peek at
Accounts Receivable Management. Accounts
Receivable Management Accounts Receivable
Management involves payment for services or
products sold with the revenue collection spread
out over a period of time. Businesses thus take
recurring payments spanning over a period of time
while the total of the contract may be specified
as one big amount.
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Best practices for Accounts Receivable Management
involve payment terms (payee, where to pay, due
date, etc.), consistent invoices, automated
provisions for receiving payments and a
collection policy among others.
B2B Collection Process Collecting payment from
businesses for services offered or products sold
is an essential part of maintaining consistent
cashflow and important for the overall success
of the company. Unfortunately, it happens that
obligations under contracts go unfulfilled with
the client not paying the dues. It is imperative
for the company to take the right decisions to
procure the due payments.
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Before working with a Collections Agency,
companies usually try to pursue First Party
Collections. If the client has not paid a debt
and is overdue on a payment the in-house or
first-party collections team can try to collect
the debt before a specified period. If it is
unable to do so it can escalate the issue and
write the debt as a bad debt. In order to
protect the rights of businesses, many attorneys
and businesses offer commercial collection
services. If a business decides to pursue a
third-party collection service it will be able
to focus on its everyday tasks while delineating
the task of collecting unpaid debts to the
Collections Agency. While there is a myriad of
actions that are followed in a B2B procedure a
few are listed below that give an insight into
the working and operation of a B2B collection
process which often involves legal actions as
well.
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Demand for Payment

• While Demand Letters may already have been sent
  by the company, a Demand Letter by a B2B
  Collections Attorney is usually taken seriously
  by the client and often results in voluntary
  payment by the business. This first communication
  is rather critical.
• The Demand Letter should inform the business that
  an attorney is involved in the collections
  process, give the client the chance to deny the
  debt, offer the opportunity for alternative
  solutions to resolve the debt.

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Investigative Work
While consumer collectors are limited in their
approaches to collect debt, commercial
collectors are not. Under the Fair Debt
Collection Processes Act (FDCPA), many
investigative tactics such as skip-tracing can be
adopted to find the customers location, hidden
assets, etc to uncover the loan. Debt Recovery
Litigation If a debtor does not respond to the
lawsuit, one can obtain a default judgment
against the company. In case the debtor does
respond, the validity of the contract and the
debt needs to be proved in the court.
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If all attempts to collect the B2B debt are
unsuccessful, one may have to file a debt
recovery lawsuit against the company. If the
company has a B2B collections attorney working
for them then the Attorney can go ahead and file
the legal claim on the companys behalf and also
represent the company.
Simply obtaining a judgment against the client
company doesnt guarantee the payment of the
debt. More often than not the business must
deploy crude and forceful techniques to uncover
the loan from the client business Contact us For
Further Information Kenstone Capital Pvt
Ltd. Phone [phone] Email
info_at_kenstonecapital.in
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