In the complex world of debt collection, understanding the terminology is crucial to effectively manage your international business debts. This glossary aims to provide you with a comprehensive list of terms commonly used in the debt collection industry, ensuring you are well-equipped to navigate the intricacies of debt collection.
1. Accounts Receivable (AR): The money owed to a business by its customers or clients.
2. Bad Debt: An unpaid debt that is unlikely to be collected and is considered a loss.
3. Charge-off: When a debt is deemed uncollectible and is removed from the lender’s books as a loss.
4. Collection Agency: A company that specializes in recovering overdue debts on behalf of creditors.
5. Credit Bureau: An agency that collects and maintains credit information on individuals and businesses, which is used by lenders to assess creditworthiness.
6. Debtor: An individual or business entity that owes money to a creditor.
7. Default: Failure to meet the financial obligations of a debt, such as missed payments or non-payment.
8. Garnishment: A legal process that allows a creditor to collect a debt by deducting money directly from a debtor’s wages or bank account.
9. Liquidation: The process of converting assets into cash to satisfy outstanding debts.
10. Outstanding Balance: The total amount of money owed on a debt, including principal, interest, and any applicable fees.
11. Statute of Limitations: The legally defined time period within which a creditor can initiate legal action to collect a debt.
12. Writ of Execution: A court order authorizing the seizure of a debtor’s assets to satisfy a debt.
13. Skip Tracing: The process of locating a debtor who has moved or changed contact information to avoid repayment.
14. International Debt Collection: The specialized field of debt collection that deals with cross-border debts between international businesses.
At Debt Collectors International, we understand the unique challenges of collecting international business debts. With our expertise and industryspecific knowledge, we are dedicated to helping B2B business owners, CFOs, CEOs, office managers, controllers, and accounts receivable departments effectively recover outstanding debts.
With a focus on international business-to-business debt collection, we have developed a proven track record of success in navigating the complexities of global debt recovery. Our team of experienced professionals is well-versed in the nuances of international debt collection regulations, cultural differences, and language barriers that can arise during the process.
Whether you are facing challenges with debt recovery in Europe, Asia, Africa, or any other part of the world, Debt Collectors International is here to assist you. Visit our website at www.debtcollectorsinternational.com or call 855- 930-4343 to learn more about our specialized services and how we can help you recover your international business debts efficiently and effectively.