[ad_1]

Debt collection is not all the same.  In fact, commercial debt collection is vastly different from consumer or retail debt collection.  It is important for business owners to understand the difference and gain an advantage over their competitors.

Commercial Debt Collection vs. Consumer Debt Collection

Commercial debt collection is business-to-business debt collection as it involves the collection of debt from a business on behalf of a business and is not only procedurally different in many ways from consumer debt collection; it is also governed by different rules and guidelines.

Commercial Debt Collection Laws

Although some states have their own laws that define whether or not they make a distinction between the two, commercial debt collection, unlike consumer debt collection is exempt from most federal debt collection laws, as those laws deal specifically with consumer or retail debt collection.  Because of this important distinction, commercial debt collection can allow for a much more comprehensive approach to collecting debts that were incurred by a business, including the use of alternative debt collection tools, such as private investigators and more.

Commercial Debtors vs. Consumer Debtors

Commercial debtors are businesses or business owners that owe a debt as compared with an individual consumer or retail customer.  As a business or business owner owing money to another business, the reason or reasons for delaying or avoiding payment can be similar to a typical consumer owing a debt, such as, lack of available funds, a belief that they can get away without paying, or a belief that they can leverage their relationship as a client/customer to delay or avoid paying, however, the motivation to pay and avoid consequences for the business they are responsible for makes collecting debt from a business much different.

Commercial Debt Collection Agencies

Commercial debt collection agencies typically handle a wide variety of industries.  Therefore, that agent must understand not only common business procedures but also those within each specific industry that the agency’s clients fall within.  Therefore, your typical commercial collection agent will have a great deal of experience and background in dealing with businessmen and businesswomen, as compared with consumer debt collectors who deal mostly with retail customers.  Some of the traits of an experienced commercial debt collector will include tact, professionalism and a unique understanding of what motivates businesses to pay their debts.

Commercial Debt Collection – Resources:

Commercial Debt Collection Agency

Commercial Debt Collection Agencies

[ad_2]

Source by Kevin Lieberman