Collection Agency, commercial Debt recovery agency, Debt Recovery, Debt Recovery Services


Despite of firm’s best precautionary efforts in escaping the bad and doubtful debts, there always exist certain number of unpaid accounts on the due date. Three-well-known causes of failure of such payments on the part of debtors (i.e. firm’s customer) can be sited as:

Ø It may happen at times that the due date of payment slips from debtors mind and he delays in making good the payments at the right time.

Ø It may incidentally occur at the time of grant of credit that a firm fails to access and interpret the character, capacity, capital, Collateral and conditions correctly and appropriately.

Ø There may arise a considerable change in the financial position of a debtor after the credit has been granted to him by the firm.

All the above stated reasons compel a firm to formulate a collection programme to obtain recovery or receivables from delinquent account.

Such progarmme may consist of following steps:

  • Monitoring the state of receivables,
  • Dispatch of letters to customers whose due date is near.
  • Telegraphic and telephone advice to customers around the due date.
  • Threat of legal action to overdue accounts, and
  • Legal actions against overdue accounts.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s