If you are like many other business owners and managers, you could be facing a conundrum.
Your clients may owe you a significant amount of money and they are ignoring all requests to settle their outstanding debts. But at the same time, you are reluctant to take them to court or call in debt collectors to rectify the problem.
Why? Well, in the case of debt-collection agencies, you may not have used such a service before and feel understandably hesitant. Or you may be afraid of getting into a confrontational situation with a client with whom you have been dealing for a long time.
A mind shift is required whereby you think of debt collectors as a resource, rather than as a last resort. Just as you are an expert in your line of business, it makes sense to draw on the skills of an agency that has experience and a proven record in debtor management.
Here are some of the issues or comments that business owners often raise when they are struggling to get invoices paid:
• “We don’t have the time needed to keep following up bad payers.”
• “The debt is not big enough to justify getting a third party involved, is it?”
• “Even if we allocate time and resources to these debts, there is no guarantee of recovering our money.”
• “Quite frankly, we don’t want to make unpleasant phone calls.”
And here is how we will typically respond to such sentiments:
• We have packages in place to ensure our services are cost effective, no matter what size your debts.
• We are experts in the field, who take the emotion away and follow our proven processes.
• We have lawyers who specialise in debt collection, so you have access to their expertise as well as ours.
As we say, shifting the mindset is the key. So what sort of tools or approaches do debt-collection agencies typically use?
The best ones take methodical step-by-step actions. From issuing reminder messages or calls to debtors requesting payment; to following up with phone calls and SMS reminders; to advising debtors about payment plans; to pursuing possible legal action – this is a proven formula that, in the hands of experienced debt-collection professionals, will more often than not result in payments being made.
Good debt collectors understand all the legal implications of chasing debts and are aware of and follow the Australian Competition and Consumer Commission’s debt-collection guidelines.
Remember, the real secret to debt collection is taking the emotion out of payment disputes and putting in place a logical, rational series of actions that can ensure all parties emerge with dignity. And you’ll also get, more often than not, your long overdue money!
To read more about who we are and our history click here or contact us by email to let us know how we can assist you: firstname.lastname@example.org