Bad debts are defined as the amounts owed by customers that are not expected to be collected due to the customer's insolvency or bankruptcy, and the debt is not written off until after taking all possible ways to collect the due amount, such as offering the customer a cash discount upon payment, or resorting to legal action.

Companies find it more practical to hire a debt management agency to recover bad and overdue debts than to directly confront the debtors, as the collector has the tools and resources to pursue the debtor.

What Can B2B Debt Management Services Agency do?

Debt management agencies can offer a wide range of services, including debt management and recovery, legal debt settlement, cross border debt management services, credit risk advisory and Business Advisory & Risk Management. They work with businesses to develop a debt recovery plan that fits their situation.