Thursday, 26 October 2017

The Pro-Collect Debt Collection Approach

Outstanding debt is something that every business, at some point, is going to face. Whether your business is small or large, some invoices just don’t seem to get paid on time.  No matter how hard you try, there’s always going to be someone who doesn’t want to pay.

One way to recover a bad debt is to refer it to a collection agency. Here at Pro-Collect, we are here to collect on bad and outstanding debts from start to finish. We are your go to debt collection agency in Sydney, Newcastle, the Central Coast, Kempsey, and Coffs Harbour! We proudly collect on outstanding debts all over Australia. Here is our step-by-step guide for the debt collection process at Pro-Collect, and how we can help recover the outstanding funds. Some of the ways Pro-collect makes all the difference when it comes to debt collection include:

  • Contacting your debtor on your behalf
  • Following up with your debtors
  • Planning payments with your debtor
  • Collection
  • Wrap up and payment

Contacting Your Debtor on Your Behalf:

Our clients come to us with many questions about the initial process of working with a debt collection agency. Especially if these clients have not worked with a collection agency previously. Some of these questions include:

How does Pro-Collect make initial contact with my debtor? What is involved in the first point of contact?

At Pro-Collect, our debt collectors are here to service your debt collection needs from start to finish. In most cases, our clients have already tried and failed to reach their debtors over the phone in hopes that they will be paid. This is when Pro-Collect will step in. Pro-Collect makes initial contact with your debtor by sending a Letter of Demand. A Letter of Demand is a letter sent via post that states how much is owed, what for and when the invoice needs to be paid. It also acts as a warning letter that you, the client, will consider legal action if the debt is not paid by a certain date. The title “Letter of Demand” should be enough to let the debtor know that you are very serious about getting your money back.

At Pro-Collect, we are also able to further contact your debtor via email. It is very important that as a client of Pro-Collect you provide our professional staff with all your debtor’s current contact information. As our first point of contact with the debtor is the Letter of Demand, it is especially important that you can provide your debtor’s current address. The debt collection process can be delayed if the debtor is not at the given address. Do make sure to check that all your information regarding the debtor is current and valid before referring the information to a collection agency.

Following Up With Your Debtors:

Some of our most frequently asked questions regarding following up with debtors include:

How many times will Pro-Collect follow up with my debtor? At what point is a more drastic approach necessary?

At Pro-Collect, our first point of contact with the debtor is always the Letter of Demand. The Letter of Demand serves as a collection letter. If the debt in question is under $1000, we will follow up by way of phone call. We will call the debtor regarding the debt up to three times after sending the Letter of Demand. If the debt our clients are trying to collect on is over $1000 – we will take legal action if the Letter of Demand is not responded to with repayment. In this case, it is likely our client has already spoken to their debtor several times. Or that the debtor had been ignoring the client and collection agency altogether! If this is the case, these are the steps that often follow: Letter of Demand, notice of legal action, and then legal action itself. At Pro-Collect, we don’t wait when it comes to collecting a debt!

If you are planning to take legal action against a debtor, legal documents will get served to the debtor as soon as possible. Sometimes these are sent via post, or in person. Legal documents can be served at either the debtor’s home or business. Once the legal documents are in place, the debtor has 28 days to pay in full. The debtor can choose to defend themselves in court if they believe the debt is not owed.

Should payment not be made in full, an arrangement is entered into for repayment of a defense received then Pro-Collect will proceed to have Judgment entered against your debtor and enforcement action taken.

Planning Payments With Your Debtor:

Many of our clients at Pro-Collect are curious about how we set payment terms with the debtors. Some frequently asked questions include:

How do I collect from my debtor? Is this collection done through Pro-Collect?

At Pro-Collect we do a complete job of handling bad debt and its recovery. We help you collect bad debt from start to finish. Our account managers will talk with your debtors to arrange payments on the outstanding debt. Our qualified professionals at Pro-Collect are trained to set up appropriate and timely payment plans. Even if the debt in question is a small business debt! Generally, if it is going to take the debtor more than 3 months to repay, we will contact you. As our client, we will communicate with you first to see if this is acceptable. We will do our best to make sure payment in full is made within a maximum 3 month period if it is not able to be made in one lump sum payment.

Sometimes we may require a financial statement from a debtor, especially if they are unable to pay in full at the time. We will evaluate the situation to see if there is a fair and reasonable offer on the table. Some of our clients may reject the offers put forward by their debtors. It is our responsibility to accept payment terms if the time offered is going to see the debt paid in a reasonable time that would be no less than is further legal action was to be taken, which would only incur further costs for our clients. Once business payment terms have been agreed upon we can begin the payment process.  We will then send a letter confirming payment arrangements on both ends.

Collection of Your Debt:

Some of the most often asked questions by our clients include:

When do I receive payment from my outstanding debtors? How much does Pro-Collect keep?

Pro-Collect is a collection agency with our client’s bottom line in mind. Our skilled account managers will let your debtor know where and when they can pay the outstanding funds. No documents are needed to be signed unless legal action has been commenced and settlement of 9 months or longer has been agreed upon for repayment. Most often debtors pay through Pro-Collect. At Pro-Collect, we generate our invoices on the last day of each month and distribute all funds received throughout the month.

Pro-Collect provides a no collection, no commission debt collection service. We do not charge joining fees, account loading fees, or ongoing contracts. No solicitor professional fees are charged to you on the issue of the legal process. These are funded by us and are recoverable from your debtor. Should the outstanding debt result in legal action,  all court filing fees and the first court recoverable service fee are added to the amount claimed and are legally recoverable from the debtor. Repayment in full from your late-paying customers is at the top of our priority list.  We want to better help you, our client, recover bad and outstanding debt.

Payment to You:

Once a client has paid – what happens? Then it’s done and this is the easy part! Our clients can enjoy being repaid, most often in full! Your information stays with Pro-Collect, in case you require our services again. Our computer system holds all information regarding debt collection and clients/debtors we have worked with. Often times we do have repeat clients and repeat debtors. If this is the case, Pro-Collect will proudly work with you again. Each client is assigned a specific account manager, who will be your point of contact, should you need to refer another debt. You can look forward to working with the same helpful account manager, unless they have left Pro-Collect, or are on maternity leave. If this is the case, you may be assigned a new qualified professional account manager.  

This blog article is posted with the intention to explain how Pro-Collect sees your bad debt through from start to finish. For any further questions on how Pro-Collect can better help you collect on outstanding debt and improve your business’s bottom line – please don’t hesitate to contact one of our friendly and knowledgeable debt collection professionals. We look forward to being of service to you!

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