5 Things You Need to Know About Debt Collection
Whether you are a business owner who is sick of pursuing a debtor for a seemingly-ancient debt or if you simply have a friend who owes you money and you’re just about ready to write it off, you could benefit from the services of a debt collection agency.
But if you’re like many people, you’ve heard tales of threatening stand-over people who show up on doorsteps and impose threats.
We want to see more people getting money that is owed to them, and we don’t want to see people struggling with debt collection on their own. That’s why our business exists: to assist you with the safe, straightforward recovery of your debt.
We wanted to explain and touch on some things you may or may not know about debt collection in the hopes that it helps you to engage us for our services.
If you are grappling with an unpaid debt, then please call us on 1300 347 929 for a confidential and obligation-free chat about our services and find out how we can help you. We are here in Brisbane and Sydney to make debt collection simple, and we’d love to help recover what is owed to you.
1. Debt collection and relationships
You may have the idea that using a debt collection agency will lose you customers/friends. Using a debt collector simply shows that you are professional, organised, and serious about recovering what is owed to you.
Of course, the type of collections agency you work with is important; at Strathmores we know the value of a client relationship, and we encourage our customers to maintain these relationships wherever possible. To that end, we use tried and tested strategies to get results and do not use ‘hard line’ tactics; preferring strategic and consistent contact to encourage payment.
And if nothing else, what kind of relationship are you looking to salvage where a client does not pay you to the point that you need to engage a debt collection agency?
2. Debt collection is not all about hassling people
There is legislation in place that governs how a debt collector may approach a debtor. The legislation includes things like contact hours, amount of contact that can be made, and the form the contact can take. We do not, under any circumstances, go outside of these requirements because we value this legislation and understand that it is in place to prevent people from being hassled.
Of course, we do whatever needs to be done within this legislation to get results; whether that’s writing letters, making phone calls or making appropriate contact in whatever way we can to get results for you.
3. Debt collectors do not profit from the misfortune of others
It is true that we do not get paid if we do not recover; but then again, neither do you. Debt collection is a service where we both benefit from a debtor making payment. But we do not chase people who are destitute or who have no capacity to make payment.
We take the time to identify reasons why people may not be able to make payment. We can offer extensions, and we can offer instalment options. We do not offer advice to customers who are having financial difficulty; our role is simply to work out a mutually beneficial payment option for your debtor to make payment.
4. Debt collection is not expensive
Every collection agency is different, but most agencies will work on a commission structure. So, the payment received will likely depend on the amount collected in the first place. Remember though, you’re only considering a debt collection agency because you have been unsuccessful in collecting your debt in the first place. So while the debt collector will take a fee, this could be the difference between being paid in the first place and not being paid at all.
5. Debt collection should not be seen as a last resort
So many of our customers come to us in frustration, where debts are unpaid for months, and cash flow is being interrupted. While debt collection is often a final thought, we know that getting involved in debt collection early on can be hugely positive.
A debt collection agency like us can offer you structured and tested solutions for debt recovery and can show professionalism and efficiency to your debtors. This can often have the effect of showing people you’re serious, which means it’s often less likely to happen again!
Ready to put your best foot forward? Contact Strathmores on 1300 347 929 to speak to our team today. We are here to help you recover debts and get back on track with your cash flow and business.