As a business owner, have you experienced customers who are delinquent in paying their debts to you? Being in business, its difficult not extending credit to customers specially if you are in the wholesale business. But some in the retail & service sectors also extend credit to increase their sales.
Debt collection is a huge problem for business owners today in the Philippines. Most businesses do not have enough resources to give the proper amount of time and effort it takes to properly collect its past due receivables. Debt collections is a very arduous process, and keeping your in-house collection staff motivated to collect from abusive customers is difficult. Collection agencies can help with some of these issues.
Most of the time, the attempts to collect debt consume a lot of time and are very frustrating and emotional. If you find yourself emotional or angry about not getting paid, you might consider using a debt collection agency. Collection agencies and professional companies who's only function is collecting money.
Most of the debt collectors in the Philippines are on a commission basis, some as high as 50% of the debt recovered. You can find most collection agencies advertised on your local hews paper, some even on street posters.
But what collection procedures will the collections agencies apply to the collection of your accounts? Most collection agency rely on letters plus phone calls and when necessary place your accounts with attorneys for legal action.
For example, credit card companies here in the Philippines usually rely on collection agencies for difficult clients with long overdue accounts and use verbal abuses and threats of legal action and jail time. While I would not like to be the receiving end of a debt collectors phone calls, these type of practice almost always results in the delinquent payer paying some if not all what they owe.
Owner of a small Philippine business sharing some of my insights in starting your own business plus other investment opportunities.
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