Are you looking for when to hire a debt collection agency?
When operating a business, establishing a relationship with a debt collection agency is important as they can take the hard work out of recovering bad debts for you that have accrued in the short or long term.
Rather then letting your invoices become weeks, months or even years overdue, having a process in place to refer overdue matters to a debt collection agency will help you stay on top of things rather than letting them get out of hand.
Unfortunately, a lot of people hear the words “debt collector” and they panic, they are often seen to be aggressive or intimidating when in fact they are just the next point of call in assisting you to find commercial solutions and results to your unpaid or overdue accounts.
This in turn will ensure your business maintains necessary cash flow to keep your business functioning and running effectively.
When to Hire a Debt Collection Agency?
A question often asked is “when should I hire a debt collection agency?” or “how far overdue does the debt have to be before it can be referred for collection?”
In short, its best not to let your invoices become too overdue to think about when to hire a debt collection agency, for example, if your invoice terms are 30 days, once they become 60 day terms, it’s a good time to refer for collection, particularly for small businesses when cash flow is key.
The more pro-active you are in chasing up overdue accounts, the more effective your recovery will be, and this will also avoid creditors from becoming further and further in debt with you.
If a creditor fails to comply with the terms of your invoice, and payment reminders and contacts go unanswered, the best step moving forward would be to refer to the matter to a debt collection agency to assist you in recovering your outstanding debt.
Appoint Early, not Late
Appointing a debt collection agency is easy and from a time perspective, its going to be a lot faster then having your staff chase up overdue accounts. The process with our team is simple, you can basically submit details of your debt online, which includes attaching documentation to support your debt. Once this information is received, we can open a file and get the ball rolling.
Once you appoint a debt collection agency, services to recover your debt include issuing letters of demand, making telephone contact, negotiating suitable arrangements, settlement arrangements, status reports and the list goes on.
A letter of demand is an effective tool to encourage a creditor to deal with the matter.
While you can send letters demanding payment yourself, they often go ignored until a letter is received on letterhead from a debt collection agency.
Do you have creditors with outstanding debts? Have reminders been ignored? Have attempts to contact gone answered?
Let us help you and avoid having to deal with these uncomfortable situations yourself. If you have debts owing that meet this criteria but you are unsure about whether to appoint a debt collection agent, give us a call on 5346 0365 and we will happily assist with any queries or concerns you may have.