In today’s business activities, enterprises all need to use debt collection services. Especially in the context of the economy gradually recovering from the Covid-19 pandemic, businesses need to restore their cash flow more than ever to serve the purpose of reinvestment, and reproduction to regain profits after more than 2 years of difficulties caused by the pandemic. Understanding these needs, in the following article, TNTP will analyze the current demand for debt collection services in Vietnam.
1. What is debt collection service?
Debt collection is the process where the lender or the party entitled to recover the debt requests the debtor or the party obligated to pay to settle the amount of money according to the content of the transaction or contract that the parties have entered into. Accordingly, the payment obligation of the debtor has arisen on legally valid contracts, but the debtor, for some reason, does not fulfill its obligation.
Debt collection service is a set of tasks that a professional debt collection service provider offers to businesses to carry out necessary debt collection activities to force the debtor to make payment of the debt to the creditor.
2. Is debt collection important?
Debt collection is very important for business operations, as it contributes to ensuring the cash flow in business activities. Without debt collection activities, businesses will face financial losses due to the profits not being paid while continuously incurring costs to serve business operations. If debt collection is not carried out promptly, it may lead to the inability of the business to operate due to a lack of capital.
Another reason why debt collection activities are necessary is that businesses often want to use the capital of other parties for as long as possible for for-profit purposes. Instead of a business having to borrow from banks at high-interest rates, they can use the capital of other partners for as long as possible to create an advantage for themselves. These capital occupation amounts are the debts that the business must pay to the partners. This capital occupation occurs very commonly in business activities, and if the business with debts to be collected does not carry out necessary debt collection activities, it will lead to long-term risks in the operation process.
3. Current demand for debt collection services
Based on our experience in operation, we believe that the demand for debt collection services is increasingly high due to the increasing amount of bad debts in the business and finance sectors. The lack of necessary human resources and skills for debt recovery leads to difficulties for businesses to effectively collect debts on their own. Therefore, using professional debt collection services helps organizations and businesses to quickly and cost-effectively recover their debts.
Moreover, as mentioned above, the number of bad debts is increasing in many business sectors due to the impact of the Covid-19 pandemic. Businesses are all in the process of restoring production, so the demand for debt recovery from previous partners is increasing, especially for large and long-standing debts that are difficult for businesses to recover on their own.
Therefore, the demand for debt collection services in Vietnam is increasing and considered an effective solution to solve bad debt problems and help organizations and individuals to recover their debts quickly and efficiently. With expertise and experience in debt collection, TNTP is ready to meet customers’ debt collection needs and carry out debt recovery activities effectively, bringing the best benefits to customers.