A debt collector is a professional or company that recovers unpaid debts on behalf of creditors. In B2B commercial collection, this means recovering money owed between businesses — a fundamentally different discipline from consumer debt collection.
B2B vs. Consumer Collection
Consumer collectors recover personal debts (credit cards, medical bills, personal loans) under strict consumer protection regulation. B2B commercial collectors recover business debts (unpaid invoices, contractual obligations, trade credit defaults) under commercial law — with access to more powerful enforcement tools and fewer restrictions on collection activity.
What B2B Collectors Actually Do
Verify debtor corporate status and solvency. Send formal demands in the debtor's language citing local enforcement mechanisms. Negotiate payment terms. File fast-track court procedures (Mahnverfahren, monitorio, IOS, injonction de payer). Manage litigation through local partner firms. Execute enforcement through bank seizure, asset attachment, and insolvency proceedings.
How They're Compensated
Predominantly through contingency commission: 15-25% of amounts recovered amicably, 25-35% for litigated claims. No recovery, no fee. This model aligns agency incentives with creditor outcomes and eliminates financial risk for the creditor.
What Distinguishes Professional Collectors
Jurisdictional expertise — knowing the optimal legal path in each debtor's country. Native-language capability. Documented recovery statistics. Industry certification (FENCA, BDIU, CSA). Real-time case management technology. And the willingness to recommend claim closure when recovery prospects don't justify further costs.