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Busting common debt collection myths

Busting common debt collection myths

When hiring a debt collection agency, there are going to be a number of things you’ll naturally be considering. There might be things you have heard or read about debt collection agencies – and while some of them might be positive, others might be negative or just plain untrue. In the interests of helping you decide whether or not hiring a debt collection agency is the right choice for you, we wanted to dispel some of the common myths and give you the facts.

Myth 1 – If you use a debt collection agency, you’ll lose customers

This is such a pervasive myth that we have to address this one first up. For starters, using a debt collection agency does not in and of itself mean that you will lose customers. Having debtors is a complicated situation to be in, and simply recovering unpaid accounts from a customer will not predict whether they will continue to purchase from you.

It is important to consider whether you really want to maintain a relationship with customers who are perpetually late in paying; but if you do want to keep customers, you can work with your debt collection agency to ensure that these relationships are preserved. In future it can be helpful to implement some tactics to ensure customers pay on time. (Read: How to Ensure Customers Pay On Time!)

Myth 2 – Debt collection agencies are heavy handed, threatening, and harass people

We probably have the movies to thank for this reputation. In actual fact, we (and every other debt collection agency in Australia) has to abide by certain regulations and legislation. What this means is that there are guidelines for what type of communication and the frequency of communication that we can make.

In addition to these regulatory guidelines, we are also a team of warm, understanding people who know that working with people (as opposed to against them) is the best way to get results. Of course, we can most certainly provide the necessary motivation for debtors to make payment – but this is through consequences based in legal action and our tried and tested recovery strategies.

Myth 3 – A debt collection agency can only make phone calls and send letters

While a lot of what we do does centre around proactive debt recovery and contact, the fact is that we have multiple avenues to pursue debtors in. We can help debtors to set up payment arrangements, we can work with debtors who are considering bankruptcy, we can negotiate with debtors on your behalf and can commence legal action on your behalf.

Myth 4 – Debt collection agencies are expensive

You are owed money and we are here to recover it for you. Our costs are based on our services and the cost of successfully recovering what you are owed. We have our own payment structure (which you are welcome to discuss with us on 1300 347 929) and work on commission which means that we only collect payment if we successfully collect your debt. This means that you’ll still end up with the majority of the funds you are owed. When you consider that hiring us might make the difference between getting your money and not, it might be that you can’t afford not to hire us!

Think it’s about time you worked with us for your debt collection woes? Call us now on 1300 347 929 and chat to us about what you are owed. We’ll go through how we can help and get started right away!

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