The history of debt collection goes back as far as the invention of money. In all that time, the process has essentially stayed the same- you borrow the money from a creditor and promise to pay it back within a set time frame. If that promise isn’t fulfilled, someone will come and visit you to collect the money in person.
Nowadays, there are several laws associated with debt collection practices, protecting both creditors and debtors alike. Of course, many of these laws differ depending on whether the debt collection concerns a commercial B2B debt or a consumer debt. But what’s the difference? As a B2B debt collection agency, Cobra Financial Solutions are here to help.
Commercial Debt Collection
This type of debt collection involves collection activities between two businesses, often referred to as B2B debt collection. Commercial debt collection is also called business-to-business debt collection. It involves debt payment from one business to another. Here, it is simply assumed that businesses are sophisticated and disciplined enough to comprehend their own rights and do their financial duties.
In reference to such debt collections, there are laws controlling commercial debt collection to ensure it is carried out in a professional and law abiding manner. It is well known that the one of the primary advantages to hiring a credit collection company is their extensive knowledge of the laws that pertain to your case.
Collecting debts on your own, while staying within the laws, can be a daunting task. This is especially true when dealing with consumer debt collection. If you have B2B debts which you are struggling to recover, or certain accounts have recently fallen due and you want to nip it in the bud to show the business you are on top of your debt collection processes, get in touch with Cobra Financial Solutions.
Operating across the whole of the United Kingdom, Cobra Financial Solutions have been trading since 2009 and have collected a whopping £15 million pounds for our customers across this time period!
Of course, the secret of successful commercial debt collection boils down to the skills of the debt collector. Consumer debt collectors have different skills compared to commercial debt collectors. Not all of those who start out from consumer debt collection are able to adapt to commercial debt collection. This is because commercial collection agencies are highly specialized. Each of our dedicated commercial debt collection agents have a wealth of experience in the B2B debt collection industry and boast oodles of positive testimonials as shown here.
You may or not know but collectors trying to recover B2B debts have to maintain a delicate balance between recovering money from their client’s debtor while still trying to maintain good relationships between the client and their customer. That’s where our experienced debt collection agents can help- get in touch to find out more about how we can help you.
Which Is Easier To Collect?
There are pros and cons to collecting each type of debt. Consumer debt involves compacted laws and regulations, while commercial debt collection may require specialty skills or an effort to maintain a relationship with the client. Either way, debt collection can be extremely complicated.
Anyone attempting to collect debts can generally benefit from the help of an experienced collection firm. Cobra Financial Solutions have two offices in the UK- one in the North and one in the South- meaning we can help more businesses, regardless of where you are based.