How To Handle Commercial Debt Collection
What is Commercial Debt?
Any debt owed by a commercial venture or business is defined as commercial debt. Quite the opposite to consumer debt, commercial debt is used to finances an array of business expenses, improvements and and asset acquisitions. When first starting out, it is not uncommon that a business may accumulate a substantial amount of debt. Instead of filing bankruptcy, alternatives to debt management include, commercial debt counseling, commercial debt consolidation, and commercial debt settlement. If your business is experiencing difficulty repaying commercial debt, the experienced business debt relief lawyers at ZocLaw.com can help you restructure your business debt. By negotiating with your creditors to eliminate a portion of your debt, we can help you to work out a repayment plan that suits your budget.
How Commercial Debt Collection Agencies Work
In most cases, when a business has a past due debt, the creditor will try to recover the debt. If the creditor is unsuccessful, it will be sent to a collections agency. The business then has to honor the commercial debt between 90-120 days. If payment is still not made, the creditor has three options: assign, sue, or sell the debt to a commercial debt collection agency. By assigning the commercial debt, the creditor may enter into an agreement with a third party and that the third party has the right to collect on behalf of the original creditor. Alternatively, the collection agency may have the right to actually keep and collect payment on the debt versus just collect.
Commercial debt collection agencies purchase debt owed by businesses to creditors a fraction of the amount actually owed. As such, they take it upon themselves to track down the business and recover the debt. Because debt collection agencies only make money if the debtor actually pays, they are notoriously aggressive. The agency will use every possible route to contact the debtor through phone and mail. If even at this point, the agency does not receive payment after repeated attempts at contacting the debtor, it may file a lawsuit. If you are being pursued by a commercial debt collector, our lawyers at ZocLaw.com can you you settle the debt for substantially less than you owe.