How to Begin the Debt Collection Process

Need help collecting commercial debt, but not sure where to start?

Don’t worry, it’s not too difficult! Here’s a quick rundown of how to start working with a commercial debt collection agency, as well as the benefits of working with one:

How to Start

1. Compile all relevant documentation (contracts, invoices, correspondence, proof of delivery)
2. Contact your chosen commercial collection agency
3. Sign an engagement agreement or contract
4. Place your claims (via portal, upload interface, or secure method)
5. Monitor progress via their reporting system
6. Receive remittance once claims are successfully resolved

Advantages of Hiring a Commercial Debt Collection Agency

• Higher recovery rates than in-house efforts
• Saves your time and resources so your team can focus on core operations
• Preserves business relationships
• Legal escalation and enforcement
• Better reporting and collection intelligence

Learn more in our latest article.

Looking for a Commercial Collection Agency? Look No Further!

You can count on the collection experts at RSD to follow through on all the steps of the collection process! If you'd like to talk about how we can help you and your business, feel free to contact us or submit a claim today.

How the Commercial Debt Collection Process Works

Does the commercial collection process feel intimidating?

In this blog, we’ll explain the processes used by commercial debt collection agencies in clear terms, so you don’t have to wonder or guess!

1. Claim Assessment & Onboarding
1. The collector reviews your documentation (sales agreement, invoices, delivery receipts, correspondence)
2. They may assess legal jurisdiction, statute of limitations, and debtor solvency
3. You formally place a claim with the collection agency, then the agency obtains your permission to act, often via a contract or engagement letter
2. Demand and Negotiation Phase
1. The agency sends a formal demand notice to the debtor, often a “final notice before action”
2. They open lines of communication: calls, letters, emails
3. They may negotiate payment terms or settlement offers
3. Escalation & Legal Evaluation
1. If demand fails, the agency evaluates whether litigation is feasible or cost-effective
2. They may consult with attorneys to assess suit risk, jurisdiction, and strategy
4. Legal Action (if necessary)
1. If litigation is chosen, the agency or an attorney may file suit
2. They may obtain a judgment, then proceed to collection tactics (e.g. liens, garnishments, bank levies)
3. All action must comply with applicable laws and regulations
5. Post-Judgment Enforcement & Recovery
1. The agency enforces the judgment using available legal tools
2. They may monitor debtor assets, coordinate with attorneys, or use court orders to collect
3. Once funds are recovered, remittance is forwarded to the client

Learn more in our latest article.

Looking for a Commercial Collection Agency? Look No Further!

You can count on the collection experts at RSD to follow through on all the steps of the collection process! If you'd like to talk about how we can help you and your business, feel free to contact us or submit a claim today.

The Benefits of Non-Hostile Debt Collection

What do you think is the best way to approach a debtor?

Professional, non-hostile collection practices are based on respect, communication, and problem-solving. 

They create a path forward instead of burning bridges. Benefits include:

• Preserving Business Relationships – Many clients do want to resolve their debts but need flexibility. Respectful dialogue keeps doors open.
• Higher Recovery Rates – Cooperation is more likely when clients feel heard, not threatened.
• Protecting Reputation – Businesses known for professionalism attract and retain better clients.
• Identifying Real Issues – A calm, solutions-driven approach can uncover disputes, oversights, or cash flow struggles that can be resolved.

Learn more in our latest article.

Ready for Commercial Debt Collection Results?

At the end of your rope with your debtor?

We’re ready to help you recover what’s owed efficiently, professionally, and respectfully. Contact our commercial debt collection experts at (248) 370-8160 or by submitting a contact form.

The Pitfalls of Hostile Debt Collection

Did you know that hostility actually lowers your chance of collecting?

Hostile or aggressive collection tactics—e.g. threats, intimidation, excessive pressure—may seem like they will “force” the debtor to pay, but they often create bigger problems. Here are a few such problems:

• Damaged Client Relationships – Even if payment is secured, hostility usually ensures the client never works with you again.
• Reputational Risk – Word spreads quickly. Negative experiences harm your brand and may deter new clients.
• Legal Liability – Aggressive actions can cross compliance boundaries, creating risk of lawsuits or penalties.
• Reduced Recovery Rates – When clients feel attacked, they’re less likely to cooperate and more likely to resist payment altogether.

Learn more in our latest article.

Ready for Commercial Debt Collection Results?

At the end of your rope with your debtor?

We’re ready to help you recover what’s owed efficiently, professionally, and respectfully. Contact our commercial debt collection experts at (248) 370-8160 or by submitting a contact form.

Step-by-Step Plan for Unresponsive Clients

What should you do if your client has gone silent on an invoice?

Here’s a step-by-step plan businesses can follow, from initial follow-up to third-party escalation.

Step 1: Immediate Follow-Up and Reminder Sequence

• Pre-due reminder a few days before the payment date, reducing the chance of missed payments.
• First overdue reminder shortly after the due date, using polite and professional language, assuming oversight rather than bad intent.
• Set a regular follow-up schedule, e.g. weekly or bi-weekly reminders via email.
• Use different communication channels (e.g. email and phone) to improve the chance of reaching the right contact.

Step 2: Documentation and Tracking

• Log every attempt: date, communication channel, message, and response (or lack thereof).
• Review the original invoice structure for clarity, completeness, and whether it includes clear due dates, itemized services, and terms and conditions.

Step 3: Investigate and Engage the Client

At the second or third follow-up, consider a direct outreach attempt:

• Call the client and ask directly if they need the invoice re-sent, have concerns about the services, or if payment is delayed for internal reasons.
• If there is a dispute, invite them to discuss the issue.
• If cash-flow constraints are apparent, offer a structured payment, including due dates and consequences for missed payments.

Step 4: Third-Party Intervention and Collection

If internal collection efforts fail, engaging a professional third-party collector can become the next strategic step.

• A commercial debt collection partner brings industry expertise, knowledge of legal frameworks, and experienced negotiation.
• Engaging before an invoice becomes aged beyond several months will give you a better chance of recovering the full amount, as well as a chance to maintain the client relationship.

Learn more in our latest article.

Ready to Escalate? We can Help with Commercial Debt Collection

Want to learn more or initiate the collection process? RSD is ready to help you recover what’s owed efficiently and professionally. Contact our friendly experts at (248) 370-8160 or by submitting a contact form.

Understanding Why a Client Goes Silent

Has your client gone silent on an invoice?

Silence on an invoice doesn't always mean bad faith. It can reflect a variety of underlying issues, including:

• Cash-flow issues or financial stress on the customer side.
• Invoice discrepancies or disputes, such as incorrect billing, missing line items, or unclear services rendered.
• Neglect, oversight, or poor internal tracking, especially if reminders were not systematically issued.
• Strategic delay or avoidance, including clients stretching payment terms intentionally.

Learn more in our latest article.

Ready to Escalate? We can Help with Commercial Debt Collection

Want to learn more or initiate the commercial debt collection process? RSD is ready to help you recover what’s owed efficiently and professionally. Contact our friendly experts at (248) 370-8160 or by submitting a contact form.

Inside Every Good Credit Policy: Limits, Terms & Consequences

How can you make your credit policy more effective?

A robust credit policy should be put into writing, and clearly spell out:

• Credit limits tailored to each customer’s risk profile and financial health.
• Payment terms, including due dates and incentives (e.g. early-pay discounts or penalties for late payment).
• Consequences for missed payments—such as stopping future orders, applying interest, or going to collections.

What if the policy is vague or missing?

Ambiguous or absent policies lead to these all-too-common pitfalls:

• Clients use inconsistent standards to push back payment, blaming unclear terms.
• Internal teams show favoritism—leading to inconsistent standards and confusion.
• Businesses can’t take swift action on overdue accounts when consequences are not documented. 

Read more in our latest article.

Overwhelmed by the number of debt collection companies?

Let us make the choice easy for you!

RSD is different from other debt collection companies because we offer consultation services to design, refine, and implement your credit policy. Of course, if you’re ready for a third party to step in with a delinquent account, RSD is always on call for you!

Contact our friendly experts at (248) 370-8160 or by submitting a contact form.