Debts are inevitable. Even large companies and corporations experience abridged funds due to various reasons.
Also, there are several governments which cannot help but acquire debts from stable financial institutions like the International Monetary (Fund). No matter how rich a nation is but if there’s a budget deficit and needs immediate funds – debt is a definite solution. Some of its unfortunate results could be a large debt service thus cutting allocations for basic social services that are supposed to be the priority.
And of course, ordinary people have debts. Many are actually have overflowing loans that could almost make them crazy, others have manageable and lucky for few with no debts at all.
However, for those firms which offers credit service, they also have a great risk of loosing their investments especially if the debtor failed to return the loan. It would be a tremendous headache when the lender filed bankruptcy and cannot be compelled to immediately pay the necessary amount.
This call for the a third-party assistance like California collection agency. To mention as an example is the Direct Recovery Associates, a California debt recovery agency, which for lending firms or service companies can be a big help.
In reality, most companies did not realized the importance to a collection agency to keep their revenues coming and recover what’s due to them in professional approach.