Debt Collection Annual Review 2021
Xservices as a professional debt collection agency with active debt collectors who specialize in their own fields. We’ve compiled some key statistics of our debt collection result for the year and have come to certain conclusions that may help you achieve a better success rate in case you need to collect debts in future.
Our success rate for commercial debt recovery 85%
Our success rate for consumer/personal recovery 83.33%
For customers followed our advice, our success rate 92.86%
Main reasons for non-success debt recovery
1. Debts were aged when Xservices were appointed. This doesn’t mean a specific age of days, instead, when we received appointments of such cases, it was found out that the debtors’ contact details have already changed with time goes on, therefore the success recovery rate dropped significantly.
Conclusion: Find professional collections services as soon as possible when you realise that you may unable to recover the debt internally.
2. Debtors (usually a business) has already in liquidation or be wound up by the other creditors. There are a few clients didn’t want to spend any dollar for debt collection service, therefore they tried to collect the debt internally until they believe there are no chances at all to recover the money, and then appointed the matter to debt collectors to try. In most cases, even the best debt collector couldn’t help much on it.
Conclusion: Business owners may lose the opportunity to recover anything if they worry too much about the percentage of fees a debt recovery firm may charge. So finally who lose?
Another factor which is very helpful during debt collections is a proper writing agreement between the parties. We experienced cases where all deals were in verbal, and the debtor disputed the debts, in such cases the creditors have to compromise more for a settlement, or sometime the parties have to go court.
Here with Xservices, our service cover Melbourne (VIC), Sydney (NSW), Brisbane/Gold Coast (QLD) and Perth (WA), if your client not paying invoices, do not hesitate to schedule a free consultation session with us. No matter you are a small to medium sized business or large enterprise, we CAN help.