What is bad debt?
Bad debt is accounts receivable that will likely remain uncollectable and will be written off. Bad debt appears as an expense on the company’s income statement, thus reducing net income. In general, companies make an estimate of bad debt expenses that might be incurred in the current time period based on past records, as part of the process of estimating earnings. Most companies make a bad debt allowance since it is unlikely that all of their debtors will pay them in full.
bad debt recovery services
The use of a bad debt recovery agency is an excellent way to collect bad debt and can help improve your cash flow quickly. Revenue Recovery Solutions specializes in providing debt collection services throughout the US.
Many companies experiencing financial difficulties will prioritize their creditors for payment. This suggests those creditors who demonstrate the seriousness of continued non-payment are most likely to be paid first. Our bad debt recovery services can help do just this, and are one of the most efficient and cost-effective ways of prioritizing an account for payment.