B2B collection involves collecting payments from businesses for products or services sold over time. It is important for cash flow. The collection process begins with first party collections by a company's internal team. If debts remain unpaid, third party collection agencies can pursue the debt through demand letters, investigations, and potentially litigation. The goal is to uncover assets and guarantee payment of debts through legal means if necessary.

1. MAX BPO
DEBT RECOVERY
AGENCY

2. WHAT IS A B2B COLLECTION
PROCESS?
An effective B2B process can help a company
have substantial working capital and good cash
flow at all times. Befor understanding what is B2B
collection process, let’s take a quick peek at
Accounts Receivable Management.

3. Accounts Receivable Management
Accounts Receivable Management involves payment
for services or products sold with the revenue
collection spread out over a period of time. Businesses
thus take recurring payments spanning over a period
of time while the total of the contract may be
specified as one big amount.

4. Accounts Receivable Management
Accounts Receivable Management involves payment for services or
products sold with the revenue collection spread out over a period
of time. Businesses thus take recurring payments spanning over a
period of time while the total of the contract may be specified as
one big amount.
Best practices for Accounts Receivable Management involve
payment terms (payee, where to pay, due date, etc.), consistent
invoices, automated provisions for receiving payments and a
collection policy among others.

5. B2B Collection Process
Collecting payment from businesses for services offered or products
sold is an essential part of maintaining consistent cashflow and
important for the overall success of the company.
Unfortunately, it happens that obligations under contracts go unfulfilled
with the client not paying the dues. It is imperative for the company
to take the right decisions to procure the due payments.

6. Before working with a Collections Agency, companies usually try to pursue
First Party Collections. If the client has not paid a debt and is overdue on a
payment the in-house or first-party collections team can try to collect the
debt before a specified period. If it is unable to do so it can escalate the
issue and write the debt as a bad debt.
In order to protect the rights of businesses, many attorneys and businesses
offer commercial collection services. If a business decides to pursue a third-
party collection service it will be able to focus on its everyday tasks while
delineating the task of collecting unpaid debts to the Collections Agency.
While there is a myriad of actions that are followed in a B2B procedure a
few are listed below that give an insight into the working and operation of a
B2B collection process which often involves legal actions as well.

7. Demand for Payment
While Demand Letters may already have been sent by the company,
a Demand Letter by a B2B Collections Attorney is usually taken
seriously by the client and often results in voluntary payment by the
business. This first communication is rather critical.
The Demand Letter should inform the business that an attorney is
involved in the collections process, give the client the chance to deny
the debt, offer the opportunity for alternative solutions to resolve the
debt.

8. Investigative Work
While consumer collectors are limited in their
approaches to collect debt, commercial collectors
are not. Under the Fair Debt Collection Processes
Act (FDCPA), many investigative tactics such as
skip-tracing can be adopted to find the customer’s
location, hidden assets, etc to uncover the loan.

9. Debt Recovery Litigation
If a debtor does not respond to the lawsuit, one can obtain a
default judgment against the company. In case the debtor
does respond, the validity of the contract and the debt needs
to be proved in the court.
If all attempts to collect the B2B debt are unsuccessful, one
may have to file a debt recovery lawsuit against the company.
If the company has a B2B collections attorney working for
them then the Attorney can go ahead and file the legal claim
on the company’s behalf and also represent the company.

10. Simply obtaining a judgment against the client company
doesn’t guarantee the payment of the debt. More often than
not the business must deploy crude and forceful techniques
to uncover the loan from the client business
Contact us For Further Information
Website: www.maxbpooutsourcing.com
Ph: +1 855 667 1276 (USA)
0120 432 2810 (India)
Email: info@maxbpooutsourcing.com