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HOW TO RECOVER BAD DEBTS

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HOW TO RECOVER BAD DEBTS Powered By Docstoc
					?Recovering bad debts is a tedious task and nothing is certain about it, neither the
duration it will take nor the amount that will be recovered. However, before the debt
can be claimed, it is essential to recognize it at the right time.




Debtors form a strong asset base of a company. Just as it is essential to reclaim debts,
it is also in the interest of the company to retain debtors. This makes the act of
recovery all the more difficult.

Identifying debts at the earliest improves its chances of recovery. A little assessment
and promptness can help in identification through past records, trivial excuses from
debtors when called for debt collection and information about debtors from outside
sources.




After the debt is identified, it is time to act towards its recovery. It is always better to
give it a try in-house at the first instance through a proper process of communication
and convincing as this assures greater chances of retention of debtors.




If these attempts fail, it is better not to waste time and to contact a debt collection
agency. These agencies not just specialize in debt collection but also have adequate
experience in handling such cases successfully. However, it must be ascertained that
their processes comply with the legal terms and conditions and that they abide by the
law set up for fair debt collection practices. In any case, the creditor must pass all
necessary information correctly to these agencies to facilitate easy processing.


Author is a contributor writer for Collection Agency. Currently working with one of
the leading Debt Recovery Agency

				
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posted:5/3/2011
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