Tuesday, 21 November 2017

When to Hire a Collection Agency & How To Lodge a Debt

When your client hasn’t paid that invoice you sent out months ago, you may be wondering… what now? The payment is really late, and you, as the business owner, cannot afford for it to go unpaid any longer. Perhaps you’ve tried to make contact with your late paying customers several times, to no avail. When invoices go unpaid, or bad debt seems to pile up out of control, it may be time to put these matters into the hands of a professional debt collection agency. If that past due invoice has gone on for too long and you’re tired of waiting, Pro-Collect has a solution for you.

At Pro-Collect we are your go-to collection agency in Sydney, Newcastle, the Central Coast and Coffs Harbour. If you’re wondering what to do about that past due debt, search no longer! We are a responsive collection agency that puts our clients needs first and takes action immediately. This blog will give you everything you need to know about when to work with a collection agency. We will answer your questions on everything from when to go to collections to how to lodge a debt. This blog will include information on how to lodge a debt with Pro-Collect online, and how to use our website for your debt collection needs.

When should a debt go to collection and how do I start the process?

An outstanding debt should go to a collection agency when it is 90-120 days past due. You can start the process by contacting us at Pro-Collect. Our friendly and professional team are ready to give you free advice on the timing of your overdue debts and the action you can take. You can access a free debt assessment online via our website. We offer many online resources to guide you through the debt collection process. For any questions regarding how Pro-Collect works, or the debt recovery process, visit our website! We offer great resources for debt collection on our website including: The Pro-Collect Blog and Frequently Asked Questions. If you’re ready to get started, give us a call!

If I’ve never used a debt collection agency before – what are some things I need to know?

At Pro-Collect, we are proud to offer a personal touch of communication with our clients. Our experts recommend that if you are interested in using our services, that you contact us directly to speak with a representative. You can also read information regarding debt collection, small business debt, and debt recovery on our website. We also offer a free debt assessment tool on our website. Debt collection has many different facets – often times debt collection is not a one-size-fits-all sort of process. For this reason, we ask that you speak with someone from Pro-Collect directly when you are considering lodging your first debt. Head over to the contact portion of our website to get connected with specialist debt recovery for the recovery of debts anywhere in Australia. Over the phone, our representatives will be able to answer any questions you may have in relation to your business’s specific needs.

What do I need to do prior to sending my outstanding debts for collection?

At Pro-Collect, all we need to start your claim is a debt collection instruction sheet. Yes, it really is that simple! It is also helpful for us if you are able to provide us with your past invoices, statements and any other paperwork you may have pertaining to the outstanding debt that you are collecting on. We understand that in some situations you may not have this information handy. If you do, it is a great idea to send these in with the completed debt collection instruction sheet. Our professional caseworkers are able to send a letter of demand without the invoices and statements. However, it does help to have this information on hand in case legal action is required. Pro-Collect would like to remind you that prompt referral of your overdue accounts increases the chance of a swift recovery. For any further questions on how to prepare to lodge a debt with us, please contact us by telephone for free advice!

How old does a debt need to be in order to send it to a collection agency?

For most trade or commercial debts, we recommend that you commence collection at no more than 2.5 times your standard terms of trade. In most cases, a debt will be past due of 90 – 120 days before being sent to collection. Chances are that you have already tried to make contact with your debtor several times and have not received payment. If your debtor has not responded to reminder letters and phone calls, has made broken promises to pay, bounced a cheque, or has avoided you altogether, recovery action can be pursued through Pro-Collect. Our experts recommend that you do not delay sending the outstanding debt to collections, in order to better your chances of recovering the outstanding funds.

Do I need to worry about any legal stuff before I lodge a debt?

Our professionals at Pro-Collect recommend that you need to be aware of what is required in order to pursue legal action. While you can threaten legal action to your debtor prior to working with a collection agency, many bad paying customers will not take this seriously until they have received a letter of demand from a reputable collection agency.  If you are planning on lodging your outstanding debt with Pro-Collect, you do not need to worry about the legal process upfront. In most cases, late-paying customers or bad debtors pay the outstanding amount once we have received the letter of demand. It is only if they continue to leave the debt unpaid that you would pursue legal action.  Should your debtor not respond to the letter of demand Pro-Collect will assist by having the legal documentation prepared and served on your debtor. Pro-Collect will share the costs of this process by funding the solicitor professional fees, thus sharing the costs and the risk with you.

If I have multiple debts, can I lodge them all at the same time?

Yes, of course! Our clients are able to fill out one debt instruction sheet and list multiple debtors. Once again, Pro-Collect requires past due invoices to pursue legal action. If you are going to lodge a debt against multiple debtors, make sure to prepare by having the proper documents for all parties available. You will need current addresses and contact information for all of the debts you intend to lodge. For any further questions or concerns regarding lodging multiple debts, please contact Pro-Collect via telephone to speak with a representative.

What details do I need to provide to Pro-Collect when I go to lodge a debt?

To get started you can use our free debt assessment tool located on our website. If you want to discuss your debt over the phone, you may also call us with the information located on the contact portion of our website. If you are interested in lodging a debt with Pro-Collect, you can do so free and easily online. We require you to fill out the form on our website to submit to our debt collection professionals. Make sure that you are able to provide Pro-Collect with the proper paperwork including the debt collection instruction sheet, credit applications , invoices and statements. Our sales managers will be in contact with you shortly after lodging your debt online. You will receive a welcome email after your initial inquiry. Your debtor will be sent a letter of demand immediately upon lodging the bad debt online. You will be given access to debt tracking online. You will be able to look online for multiple debts, and track debt communication rather than playing telephone tag. This is fantastic for our clients to get fast updates on the debt collection progress.  

For any further questions or concerns regarding lodging a debt with Pro-Collect, please contact one of our friendly and knowledgeable debt professionals. Pro-Collect can be contacted online via our website, or directly by telephone. We are here to collect on bad debt anywhere in Australia from start to finish!

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