Commercial collections agency basics exposed

What is a commercial collections agency? It is basically a company that deals in the pursuit of debts that are owed by one business to another business. Many of these commercial collections agencies will function as agents of the creditors who hire them and may collect in exchange for a percentage of the aggregate total amount that is collected under that relationship.

There are numerous classifications of commercial collections agencies. Sometimes subsidiaries of the original company to whom the debt is owed will handle the collections and therefore are considered a first party agency. They would be classified as a third party agency if they are a separate company that was contracted by another company to collect for them in exchange for a specified fee.

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