What is Debt Collection?

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Debt Collection is a process of collecting money owed by a borrower to a lender. In B2B Trade Credit context, the borrower could be enterprises of all sizes and the lender could be a bank or an NBFC. The process begins with internal follow-ups (invoices, emails, phone calls) after a payment deadline passes. In some cases the financial institutions engage collection agencies to collect overdue invoices. In extreme cases, debt collection also involves initiating legal actions against borrowers.

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