How not to lose more money in collecting bad debts

Bad debts are bad debts because they are way past due and are difficult to collect. Understandably, the natural reaction of companies is to focus their collection efforts in collecting these kind of debts.

This is fine except that, usually, they end up spending resources not commensurate to the benefits, and will most likely be distracted in their efforts to collect their "good" accounts. Outsourcing becomes an option. It is a strategy that most multinational companies in the Philippines have long adopted.

Collection agencies have personnel trained in the various means of collection. They give their clients flexibility and strength in pressuring debtors to attend to their obligations. However, just as there benefits, there are also pitfalls.

Learn about these benefits and pitfalls as Atty. Nelson Getigan of GCCS & Associates Corporation writes about engaging a collection agency in the Philippines.