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B2B Collections Collection Tips Uncategorized

How To Recover Unpaid Invoices: Commercial Debt Collection FAQ’s

How To Recover Unpaid Invoices: Commercial Debt Collection FAQ's

What can you do to collect unpaid debts?

Business debt collection practices aim to simplify the management and retrieval of late payments while expediting the process. However, there are no rigid rules regarding these practices, as your approach will depend on your specific history with each customer and the reasons behind their overdue payments. 

Before hiring a professional, consider these basic methods for collecting overdue debts. Let’s explore some options:

  • Check if there were any problems: Verify if the customer received the invoice, or if it was unclear or did not meet their requirements. Confirm if the goods were delivered correctly or if there was an error in the address, and double check your system delivered the invoice correctly.
  • Act promptly: Overdue invoices should be addressed immediately. The longer an invoice remains outstanding, the harder it is to collect. 
  • Contact the customer: Before seeking outside help, contact the person who owes you money directly, and keep a record of all communications and receipts. 
  • Offer solutions: Consider the possibility that the customer is experiencing financial constraints, in which case they may be open to a repayment schedule. By establishing a rapport with the customer. emphasizing the importance of your invoices, and showing your interest in helping them as well, you increase the likelihood of prioritized treatment and prompt payments.

 

When should you seek outside help?

If your efforts to collect the debt on your own have been unsuccessful, consider getting assistance from a business-to-business debt collection agency or a debt recovery attorney. These agents specialize in collecting debts on behalf of businesses like yours, and can help with contacting the delinquent client, negotiating repayment options, and exploring legal remedies. They work as middlemen between you and the customer, taking a percentage of the collected amount as payment for their services.

Can I hire a lawyer for commercial debt collection?

Yes, you can hire a debt collection lawyer for business-to-business debt collection. A debt recovery lawyer can advise you, assist through the legal process, and represent you in court. The entire debt should be balanced against the expense of legal representation.

 

Is legal action a good option for business to business debt collection?

Yes, but explore other options first. Legal actions can take a long time and cost a lot of money, and you can never be sure of the outcome. Before going to court, knowing how debts are collected in your country according to the law is important.

 

Can debt collectors contact your diligent clients anytime and anywhere?

No, debt collectors are bound by certain rules regarding when and how they can contact you about covered debts. There are also ways to stop a debt collector from contacting you if needed.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable. 

Led by a team of experienced commercial debt collection attorneys, Monetaria Group has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!

 

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What is Monetaria?

What is Monetaria?

The debt recovery lawyers at the Monetaria Group specialize in merchant cash advance and commercial debt collections and recovery.

 

What is Monetaria?

Monetaria is a debt recovery and collections agency that specializes in merchant cash advance collections and commercial debt recovery and has quickly established itself as the number one solution for merchant cash advance funders and other businesses looking for a debt collection partner.

With over 10 years of experience and led by a team of renowned commercial debt collection attorneys, Monetaria has risen to the top of the industry thanks to its innovative approach to debt recovery. We understand that each case and circumstance is unique and requires a personalized approach in order to be effectively recovered, which is why we offer a range of services designed to meet the needs of businesses of all sizes.

There are two primary collections services Monetaria is perhaps most known for:

The first is our merchant cash advance collections program. This program is designed specifically for merchant cash advance businesses that have outstanding payments on advances, delinquent clients or multiple defaults. When MCA companies are ready to recover the debt and partner with a third-party collections agency, Monetaria is there to help.

Commercial collections– or business-to-business debt collection- is another important debt recovery service Monetaria offers. This program is designed for businesses looking to recover debts from other businesses who are neglecting payments and invoices and has seen hundreds of major companies recoup payment for their services rendered or products sold.

The team at Monetaria has extensive experience in recovering outstanding receivables, and we use a variety of tactics to deliver for our clients. This may include legal action, negotiations, and even mediation. Whatever it takes, within the confines of the law, Monetaria is committed to helping businesses recover the debts they are owed. 

A key advantage of working with Monetaria is our cadre of experienced professionals, which includes debt collection lawyers, collectors, and other experts who are well-versed in the complexities of the debt recovery process. This diverse and highly skilled and effective team ensures we are able to provide a level of service that is simply not possible with other debt recovery companies.

On top of our single-minded focus on each client’s case, customer care and communication are core values for us. From our lengthy experience, we understand that recovering debts can be a stressful and overwhelming process, and do everything we can to make it as easy and hassle-free as possible for our clients. This includes providing regular updates on the status of the recovery process, always being available to answer any questions clients may have, and working closely with them to develop a customized recovery plan that meets their specific needs.

Monetaria is the number one solution for businesses looking to recover debts in the merchant cash advance and commercial debt space. With our innovative approach, experienced team, and commitment to customer service, we have established ourselves as the go-to choice for businesses looking to get the money they are owed. If you are a business owner struggling to recover money, don’t hesitate to reach out to Monetaria for assistance: we have the expertise and resources to deliver the results you need.

 

If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable. 

Led by a team of experienced debt collection attorneys, Monetaria has helped hundreds of businesses recover and collect their outstanding debts and payments. See testimonials from our delighted and satisfied clients here, and schedule a FREE consultation with our expert team to see how we can help you recover your money today!

 

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B2B Collections

The Complete List of Debt Collection Terms You Should Know

Debt recovery is all about staying proactive to stay out of trouble. Before you dive into finessing your bulletproof collection strategy, let’s brush up on some of the most used terms in the biz.

A Definitive Glossary of Essential B2B Collection Terms (and Why They Matter)

Account

A record or file of a debt, opened when you contact a recovery specialist. An account is what you’ll need to reference during the recovery process.

Arrears

A debt that is unpaid or overdue. This is a legal term that will come up often.

Charge Off

Any amount of an account that you no longer expect to be paid. The money is written off as a bad debt for accounting purposes even though the debt is still owed. Note that a charge off will appear on a client’s credit report. This is a last resort option for the creditor.

Collection

The process, from the moment your invoice goes overdue, of seeking money that you are owed.

Creditor

The person who is owed money (that’s you). In legal proceedings, they may be referred as the plaintiff.

Credit Report

A record of a client’s credit history, as reported by creditors and other financial bodies. If there is inaccurate information due to circumstances including identity theft, a client can dispute their credit report. Credit reports are crucial to debtors and may include details of:

  • Employment
  • Addresses
  • Credit inquiries
  • Credit cards and loans
  • Accounts
  • Liens
  • Wage garnishments

Damages

The amount of money claimed that is yet to be calculated.

Debtor

The person who owes money (your client). In legal proceedings, they’re known as the defendant.

Default

Also called defaulting on a debt. This occurs when a client fails to meet the repayment obligations on a debt, either when they miss payments or stop making payments.

Default Judgment

A court judgment that is made when someone did not file a defense and the plaintiff (creditor) obtains a judgment from the court.. In this case, the debtor will be sent a notice of default.

Delinquent Debt

An account on which a payment is past due. You can report any delinquent account to a credit bureau. Note that when an account turns delinquent, it’s possible to charge off the account.

Garnishment

Through a court order, you can force a debtor’s employer to withhold a portion of the debtor’s wages or bank account to pay an outstanding account.

Interest

The cost of borrowing money or buying goods or services on credit. It is typically calculated as a percentage of the amount due.

Invoice

An itemized list of goods shipped or work complete, oftentimes specifying the price and the terms of sale.

Principal

The initial amount of the debt or the amount that remains unpaid by a consumer. It does not include collection fees and interest.

What’s Next?

Now that you’ve (re)familiarized yourself with the lingo and terminology, it’s time to get to work on a solid strategy. Check out our expert tips on how to devise a collection plan that works for you. If those don’t cover it and you’re still waiting to get paid, then give us a holler, day or night.

Contact us Today