Direct Recovery Associates is a bad debt collection agency specializing in commercial debt collection services throughout the U.S. and internationally.

Collecting bad debt is a frustrating experience for any creditor. Creditors go into transactions with trust, excitement, and focus. Their focus is usually on their own performance, providing their services and/or product in an efficient, timely, and acceptable manner to their client.

Unfortunately, creditors have to learn to temper some of their initial excitement for landing the new sale or big deal and focus some of their efforts on the client and making sure they are trustworthy and that their transaction will not turn out to be a bad debt collection nightmare. In other words, when the initial sale is forming or materializing there is great enthusiasm and emotion. As any bad debt collection agency will counsel, this is the moment when a creditor must think clearly about the possibility that their trust might be taken advantage of and they need to take precautions to avoid any misunderstandings and certainly to avoid a subsequent bad debt collection scenario.

The most common bad debt collection mistake is made in those initial moments. Creditors feel reluctant to require a new client to provide complete documentation, such as, the proper credit applications, sign the contract, send the proper purchase order, etc. Proper documentation is many times the difference between a textbook transaction that pays on time and results in a happy creditor and client and a lost opportunity and a bad debt collection.

Complete documentation is oftentimes the light that exposes the ill-intent. A client that is trying to set up or scam a creditor will run when asked to provide documentation. Professional debtors feed off creditors that let emotion, not documentation, rule the transaction. As a bad debt collection agency, Direct Recovery, routinely handles account where this scenario occurred. Dishonest debtors prey on desperate, disorganized, and excited creditors.

Having said that, debt collection is an unfortunate reality for everyone, even the most organized and cautious creditors. The point is, a creditor should take every opportunity to document each transaction just in case that documentation is needed later by a bad debt collection agency to enforce collection.