5 Top Insite Tips from a Debt Collection Agency

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Even for major organisations, the debt collection procedure can be unpleasant. These suggestions are intended to assist you in comprehending your options and selecting the best course of action for your company.

Here are 5 legal tips for debt collection.

Tip #1 – The methods for handling accounts are where it all begins. Accurate and thorough records can help rapidly discover and deal with past-due accounts, whether pursuing debts against a client or a third party. The customers (or other parties) should be aware of the exact reason and amount owed. Provide itemised invoices with a particular payment due date (or, in the case of third parties, a breakdown of the amount demanded and proof of loss).

Tip #2 – Pay attention to overdue debts. Do not put off paying a bill. The longer a debt goes unpaid, the harder it will be to collect.

Tip #3 – Call PRIOR to the due date of payment. Take initiative. Don’t hold off until debtor has broken their payment obligation. A few days before the payment is due, give debtors a call to make sure they have received your invoice or letter of demand and that they are aware of your bank information.

Tip #4 – When trying to collect money, act with respect and professionalism. Threatening, bugging, or intimidating clients who are unable to pay is prohibited. Never threaten to do something that you are not willing or able to do legally. Think about asking Debt Recoveries Australia to help if you have a particularly tough debtor who are unwilling to deal with.

Tip #5 – Accepting a payment plan can be a good idea. Some clients merely lack the resources to make a one-time payment. To find out what the consumer can afford or whether instalment payments are possible, try working with them. Any arrangement you establish should be put in writing, and you should ask the client to sign a copy to confirm their intent to pay. Debt Recoveries Australia can assist you in managing and overseeing any payment arrangements made with the clients.

Do you want to learn more about how Debt Recoveries Australia can assist you with your invoicing and debt collection issues? Please contact us at email@debtrecoveries.com.au or 1300 799 511. You can also contact us via Skype at debtrecoveries.

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