If you want to Collect debts is not a common topic of conversation, however if you own a business, the chances are you have at one time or another encountered unpaid debts.
It is not uncommon, especially in today’s uncertain economic conditions, to have to deal with overdue invoices issued for goods or services. Businesses will often attempt to collect payment themselves from the debtors, often unsuccessfully, before, if at all considering a third-part such as a debt collection agency.
Believing using a third-party to collect debts the outstanding debts has the potential to scare the debtor way, business feel the better option is to try to recover the debt themselves.
With this in mind when should you make the decision to pursue the debtor or cut your losses and forget the debt?
How Long to Collect Debts
The statute of limitations for debt in most jurisdictions in Australia is 6 years from the last acknowledgement of the debt. The precedent for collection also allows a debt to be collected even if it has already been written off in a pervious taxation period.
So, if the outstanding it is true and correct, and the debtor is located, you are on your way to recovering the debt.
When the debtor is contacted, it will then need to be established if they have the capacity to settle the debt by entering into an agreed payment plan or settling in full with a lump sum payment.
However, on the flip side if the debtor is located and is difficult to deal with you would need to consider your options. Is the time, energy, and money spent attempting to collect payment from the debtor, warrant the amount of the debt?
You don’t want to waste good money trying to recover bad debts so might see it an option to forget the debt.
If you are weighing up your options and asking yourself if you should collect or forget a debt, we say you should never forget a debt!
If your attempts to recover the debt, have you frustrated and ready to give up, then you should engage the services of a professional debt collector such as Advance Debt Collection.
It is understandable that many business owners find the idea of hiring a debt collector intimidating, but it is not as daunting as it seems, and in fact the earlier you engage the services of a debt collector the likelihood of recovering payment is higher.
A debt collector has many resources available to them that a business owner wouldn’t so their only focus is collecting the debt previously deemed ‘impossible’ to collect.
Debt collectors are governed by a strict set of regulations so while they have access to the latest in technology making the process faster and easier, they must follow the rules and regulations regarding debt collection which most businesses would not be aware of.
So, if you are considering the option to collect on those bad debts you thought were lost, Advance Debt Collection is a reliable debt collection agency contact us today to discuss your debts.