A big chunk of running a successful business is learning how to manage your finances. Burying yourself in a heap of unpaid invoices is a rookie mistake business owners make, one that is easily avoidable when you are armed with the right information and you are in partnership with a good debt collection agency.
Develop Good Business Practices
First things first: Try to avoid, or at least minimise, the number of unpaid invoices by coming up with a solid internal process that is efficient and fool-proof.
Any business transaction is made official by signing a contract. Begin by laying out Terms and Conditions in the contract, and by being specific about payment schedules, and so forth. In this part of the written agreement, you may indicate how you expect to be paid, when, and in the event the payment is overdue, what actions you plan on taking.
You may include a clause indicating the debtor’s obligation to pay not only the debt, but also the collection fee as well. You don’t have to worry about additional costs on your end in this case.
By signing this contract, the client agrees to your terms and conditions. This is important so that in the event you need the help of a debt collection agency, all actions henceforth are legally binding.
You may submit any documents to an agency when you have already sent a final notice to the client and you still haven’t had any response. The sooner you do this, the better the chances of recovering debt.
If you are in the lending business, you might want to perform a background check on a potential client first. Doing so will give you a brief view of their credit reports, if they have any ongoing cases in court, and so on. If the company has a habit of paying late, this is a red flag you should be aware of.
Even if you aren’t in the lending business, background checks will give you a sense of security. This is about protecting your business in the long run; you wouldn’t want to deal with a client that could be detrimental in the end.
Why Partnering With a Debt Collection Agency is a Good Decision
Being a business owner doesn’t always revolve around sales. There are many aspects of owning a business that you can focus your attention to when you hire professional debt collectors to handle unpaid debts.
- The chances of recovering a debt are high: While no reputable debt collection agency will outright claim that they can recover your debt 100%, they do employ best practices when it comes to getting in touch with a debtor and encouraging them to pay as soon as possible.
- You get to do other things: As a business owner, you can finally turn over the task of collecting debt to professionals while you focus on other aspects of the business, like focusing on customer satisfaction, creating and marketing new products, and such.
- We are your partner: When you enlist the assistance of a debt collection agency, think of us as your partner. We work together to minimize outstanding debts.
- Locate missing debtors: Let’s face it: sometimes there are people who would do anything to avoid making payments. Your emails go unanswered; calls are rejected or worse, they have changed telephone numbers; to some extent, they might even have moved away. A debt collection agency uses techniques and tools that can track down individuals who owe you money.
- Debt collection is done right: Good debt collectors adhere to the guidelines as mandated by the ACCC. Legitimate collection techniques are used by experienced debt collectors.
- Court action: With the help of a debt collection agency, you can take matters in your hands and sue a debtor if they refuse to pay. Any sort of communication between the debtor and the agency can be used to strengthen your case.
JMA Credit Control
We are a debt collection agency with over fifty years of experience. We are more than happy to assist you recover debt in the best possible manner. We believe in a transparent and secure transaction that will protect our clients, and offer a “no collection, no fee” policy.
Contact us for any queries you may have about debt collection and let us be your partner in securing financial freedom like no other.