Why Outsourcing Account Receivables Makes Good Business Sense
More than 60% of Australian small businesses fail within the first three years of operation. Although, given the never-ending challenges that business owners face on a daily basis, this may not come as a surprise to many.
In an ideal world, all customers would settle their invoices within the agreed payment terms; however, despite payment times improving in Australia, very few businesses ever pay on time, causing frustration and anxiety as it impacts a business’s day-to-day cash flow position. Every business owner, regardless of industry, accepts that unpaid bills are a part of doing business, but they may be aware of specific strategies they can use to help reduce or even eliminate such risks.
Delinquent debtors are an expensive problem that can harm your company’s bottom line.
Although there are several options for dealing with bad debtors, they can either be commercially unviable (litigation or mediation), ineffective (using minor claim processes such as a civil tribunal), or disrupt the efficacy of the business activities (committing most competent staff to the task of debt collection). Furthermore, performing your own collection actions can be a frustrating and time-consuming process, potentially exposing the company to regulatory and technological risks.
The most practical solution to all of these issues is to hire a debt collector to work alongside the accounts receivable/recovery staff.
A skilled debt collector is well-versed in all relevant industry laws and regulations. Debt collectors are required by law to act in the best interests of your business as an agent, so rest assured that they will always strive to collect the money as quickly as possible. Furthermore, commission-based collectors, such as Debt Recoveries Australia, operate on a ‘no win, no fee’ basis, implying that using their services is a risk-free move.
Why Use Debt Recoveries Australia?
Debt Recoveries Australia is authorised to collect debts in all Australian jurisdictions. Their ‘no win, no fee’ policy ensures that their interests are aligned with yours. Leaving unpaid debts in their professional hands means that your staff will have more time to focus on core business functions.
Your company will also be relieved of dealing with complications that may arise during the collection process, such as a dispute or registering a provable debt with an insolvent/bankrupt debtor. If a debt remains unpaid, Debt Recoveries Australia will always recommend the next course of action, which may include filing a lawsuit on your behalf through their legal department.
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 firstname.lastname@example.org or 1300 799 511. You can also contact us via Skype at debtrecoveries.