Debt Collection Service  Manufacturers, Traders, Suppliers

Collection, a term from business administration, means the collection of receivables. As this is a complex and labour-intensive area, overdue receivables from companies are often transferred to specialized debt collection companies. This makes sense, as the claim holder can concentrate on his core business by submitting these claims.The commercial collection of claims is subject to authorisation. The remuneration of collection agencies is not subject to state regulation and is freely negotiable, although collection agencies are often based on the scale of fees for lawyers for pre-judicial debt collection. However, if a claim is titled, the activities of the collection companies are often paid by a success fee, which is linked to the amount of the total claim.It also happens that collection companies purchase the claim and then act on their own behalf. The amount of the purchase price for such claims depends on the total volume of purchase and the situation of the debtor. In principle, in addition to the costs of legal proceedings, the debtor must also pay the post-judicial costs of an already titled claim, which also includes interest. Collection will therefore always be used where receivables are overdue. If a company has used the normal measures of reminders - even multiple reminders - which do not exceed the operational scope without success, it is customary to hand them over to a collection agency.Collection advice or collection services can be used for both private and business purposes, whereby entire collection systems are created.