You sell goods or perform a service, after which you issue an invoice to the contractor. Then you patiently wait for the transfer, although you have to pay taxes, salaries for other employees and many other expenses.
After all, the payment deadline is past and the transfer does not come. Probably every entrepreneur has found himself in a similar situation once. What can you do in this case? How to get the contractor to finally pay the invoice? Debt recovery comes with the help.
What is debt collection?
Many myths and false opinions have accumulated around debt collection. Let’s start with the fact that debt collection is completely legal and allows you to take any action to assert property, as long as they are legal.
As part of debt collection, we distinguish two main types: soft debt collection and hard debt collection.
Soft debt collection, also known as amicable collection, is primarily about calling contractors to meet their obligations on time. However, when the payment deadline is exceeded, soft debt collection involves gentle recovery. Therefore, soft debt recovery includes such tools as:
- payment reminders,
- requests for payment,
- requests for payment with interest notes.
In turn, hard debt collection is a court debt collection. As a result, we can obtain a court order or payment order. Together with the enforcement clause, they form the basis for bailiff enforcement.
Importantly, currently we can also use debt collection in the online version.
What is online debt collection?
Online debt collection allows entrepreneurs to recover their debts at a relatively low cost. If you are just starting a business or you often have to use debt collection, this solution will be perfect.
Thanks to online debt collection, every entrepreneur can easily and conveniently recover their own debts. All formalities are carried out via the Internet, without leaving the office. All you have to do is register on a special internet platform created by one of the online debt collection companies.
Then you can add a past due invoice to your account. This will allow you to take advantage of the help of specialists who, having familiarized yourself with your situation, will propose the best recovery strategy. Importantly, when you decide to collect online, you actually start taking action right away. It involves, among others on sending reminders to unreliable contractors.
Why is it worth using online debt collection?
As you can see, the use of debt collection, especially in the online version, is extremely simple. However, despite this, many entrepreneurs have concerns about recovery. Let’s look at why it is worth using debt collection. The most important advantages of this solution are:
- debt collection increases our chances of recovery,
- debt collection accelerates recovery of receivables,
- a wide range of debt collection companies that allows you to choose the right strategy for your needs,
- remuneration dependent on effects,
- debt collection at the debtor’s expense,
- the availability of this solution for both companies and private individuals.