Cashflow is the lifeblood of business. But what happens if you’re struggling to collect on an outstanding account? Debt collection could be the answer.
Risk is part of running a business and a healthy business depends upon healthy cashflow. As the End of Financial Year draws near, it’s the ideal time to tie up accounts and finances. Many businesses struggle to manage accounts at the best of time. When a client delays settlement of a payment well and truly over 90 days, the stress of chasing that one client can deter attention away from the clients who do pay. Handing over the collection of your debt to a professional can reduce costs, contribute to your cash flow and free up your time to focus on your business.
When You Need Debt Collection
- Your customer has exceeded their credit terms
- You have attempted contact with no response or payment for 90 days
- You have been in contact three or more times with no payment
- Your customer has indicated refusing to pay your account
Handing the debt across to the professionals takes the stress of debt collection process off your hands. The sooner you hand it over, the better the outcome.
How To Find A Debt Collector
Many debt collection firms have a free consultation service. A call or email for a free consultation can lead to an agency who will suit your needs.
What You Need
Depending on the circumstances, debt collector firms require:
- Any written correspondence between you and the debtor
- Copies of relevant statements, invoices and dishonour cheques
- A Director's guarantee
- Last known address and contact details
If at any time you're not entirely sure about what information you need to provide, your collector will confirm the details. Handing over the stress of collections to someone else is the beginning of turning the situation around - even if you don’t know where your debtor is. The professionals know how to handle this.
When The Debt Is Not Collectable
End of Financial Year really is the perfect time to address your accounts but sometimes, debts might have been outstanding for a long time, the debtor has gone into administration or liquidation, or action taken by another creditor prevents their ability to pay you. If you haven’t acted quickly enough, these debts may prove uncollectable. When a debt gets to this stage, the debt collector informs you immediately to close the file, often leading to no collection of a fee.
Looking To Collect On Debt?
My Business Path Can Help.