Due to the financial crisis or lack of control, some companies present a list of delinquent customers. That is, there is loss for the sale or acquisition due to that receipt blocked. To reverse this situation, you need to work with credit recovery. Credit recovery works by contacting and negotiating with certain consumers regarding a backlog or debt. In this case, it is common for companies to hire a call center that specializes in the negotiation issue.
So credit recovery is a way of rescuing certain debtors and assisting companies with assets and backlogs. There are even some businesses that specialize in negotiating or taking on the debt portfolio of other companies. Be careful that this activity does not negatively influence financial education!
What is the difference between recovery and credit recovery?
Delinquent credit recovery is a way of contacting the consumer who has outstanding debt and trying to negotiate it so that the credit can be repaid. Delinquent claims usually have bids that are out of touch with the debtor and therefore tend to be unpaid. However, the credit recovery companies act on the proposal to negotiate this debt so that it is accessible. Regarding the difference between a collection company and credit recovery companies, it is worth understanding that one intends to remind or appeal for repayment of debt, the other intends to recover and negotiate payment, respectively.
Therefore, the charge is a reminder that the debt has not been paid and is a call for repayment. But credit recovery is different in this respect, being more a way to negotiate so that the amount can be paid by the consumer. Thus, knowing about credit recovery allows companies to acquire capital that was previously considered “lost”, and through this maneuver, still improving the relationship with the customer and maintaining a good bond between the parties.
Therefore, the difference between recovery and recovery is:
- The collection is more worn and is usually made by the credit granting company itself;
- Recovery has a different relationship margin and can be done by third parties or specialized companies.
In addition, sometimes recovery has less wear on the customer and even relationship maintenance.
What are the benefits of credit negotiation?
Credit recovery companies are based on the negotiation of a capital considered inactive or outstanding, unpaid debts. In turn, the role of the credit recovery company is to assist consumers and businesses in:
- Helping companies get back the capital stuck in debt;
- Negotiate directly with customers and thus lessen the image of the company;
- Offer more attractive opportunities (for both).
Finally, credit recovery is a collaborative way to negotiate a debt that was in limbo. Therefore, it is important for the client to be open-minded and honest about their reality. This way, the company will better understand your situation and try to come to an agreement that suits both of you.