This question comes up often. Every day in fact. People want to know when they are going to get paid for a product or service that they’ve already provided.
There is no straight answer. There are many factors that come into play when engaging in debt collections and everybody’s situation is unique. Some debts are recovered quickly, in weeks in fact. These are situations where the debtor was just seeing how long they could get away with in not paying. Once a debt collection company gets involved they respond. Others may pay because they simply forgot about owing the debt possibly due to miscommunication between the parties. The demand letter our company sends is strongly worded and gets their attention.
Other debts might not be as easy. This could be cases involving multiple parties. For example, you provided a product or service and your debtor is still waiting on another party to pay them before they can clear the debt owed to you. One consistent factor is that, generally speaking, the larger the debt amount the longer the recovery time. In the collections process we may also encounter unusual circumstances that prevent payment. The most common of these would be on business to business debts where the debtor’s business has been liquidated in a compulsory wind up of the company that is filed with the courts. We have also encountered debts where the debtor has passed away and our client did not know it. This is very rare and unusual but in such a case debt recovery becomes nearly impossible.