As a leader in business to business debt collection services, we’ve been asked to share our insights into the size and scope of the b2b debt collection industry.
After the 2008 recession, businesses began to rely less on traditional credit lines and more on factoring and accounts receivables. Factoring is the process of selling accounts receivable directly to a third party and accounts receivable is a list of accounts that people or businesses owe the factor. When debts are owed to a third-party that is not the original creditor, there is a danger of not recognizing the credit risk and the credit risk for accounts receivable is higher than traditional credit lines. Experts believe this trend will continue to grow as more and more businesses forgo credit lines and factor accounts receivable.
In the United States, the debt collection market is expected to reach $26.45 billion by 2022. In 2014, debt collection was a $20 billion market in the United States. In the United States, debt collection is a $26 billion market with 40% growth from 2014 to 2022.
The best laws encourage the market to work as best as it can. Debt collection is a good example of this. For the economy to function well, people have to be able to borrow money and also have to be able to pay off their debts.
Businesses rely on being able to enforce debts to be able to succeed. A debt collector works to make sure debts are paid and debtors’ rights are protected.
Debt collectors can only perform certain activities in order to enforce debts. The world of business isn’t always a walk in the park. There are times, when one company may find it difficult to pay another company for the services rendered. While this isn’t ideal, it does happen. Especially in the B2B sector. After all, if you’re based in one location, while your supplier based in another, it can be immensely difficult to get payments across on time. There are many other situations that occur in business too, which are often beyond the companies control like natural disasters etc. whenever this happens it may take companies weeks and sometimes months to settle debts between themselves. Now you can accept late payments (which isn’t advisable) or you can pursue legal action to recoup what you are owed. But the problem is that even if you are successful, you are still unlikely to recover the full amount. Or you are likely to pay a lot of money in legal costs.
The Important use of a Debt Collection Agency by a creditor is finding the honest, dependable and successful company to collect your debt. For The best in Commercial Construction debt collection, call Construction Credit & Finance Group today 1 800-848-4176 or visit ccfgcredit.com for more information.