OUR PROCESS
You assign the debt to us effectively appointing us as the recovery agent. We immediately contact the debtor advising them of our involvement and inviting them to contact us to arrange payment. We continue with our step by step process with the debtor, keeping you informed on a weekly basis of progress. Through letters visits and phone calls usually 80% of debts are recovered. All our correspondence explains to the debtor the serious nature and consequences of non payment.
If the debtor and you agree to it we can set up direct debits to facilitate payment. After further demands we will register the debt with credit agencies which have real impact on the debtors ability to get further credit. Ultimately we will take it to statutory demand level giving the debtor 10 days to make payment or the court will appoint a liquidator to their business. At that point you can decide whether you wish to take the matter further and incur legal fees. Most debts are recovered before this becomes necessary.
Unfortunately in the current trading environment bad debts are increasing and hampering business cash flow. You can have a profitable business but if you don’t collect those debts your whole business can be put at risk.
At DebtCollect we have a flexible approach that is targeted to meet your specific needs and the circumstances of the debt. If appropriate we will give you free advice on further steps you can take without our involvement, which may lead to the recovery of the debt.
Third party involvement means you don’t to become distracted from growing your business. You can retain the productive side of the relationship with the client.
If you have the correct credit terms in place the cost of recovering the debt could be free, we can help set this up if you don’t have it in place.
FEE STRUCTURE
If we don’t recover any funds because the debtor is gone no address or there simply are no funds, then you only pay the administration fee. These fees apply up to and including the issue of a statutory demand for payment. If a direct debit is agreed to and set up additional fees will apply, usually around 2% on each transaction.
If fees can be recovered from the debtor based on your terms of trade then there may be no cost to you.
OTHER SERVICES
PPSR registration, do your credit terms allow you to register? Can mean your debt is always secure. We can advise and set this up for you.
Terms of trade. We can review your credit application form and advise you of the correct wording to maximise your security. The correct wording on your invoices can ensure future debt recovery costs are incurred by the debtor.
In the right circumstance we can purchase debt outright, where we pay you a percentage of the value of the face debt and recover what we can.
