Professional debt collectors from Xservice Debt Collection provide credit providers with three updated tips to survive and thrive in 2023. With rising interest rates, increased liquidations, and a deteriorating economic situation, we, as a debt collection agency, are here to share our most recent recommendations, which we hope will assist you in collecting your money safely and quickly.
Start debt collection as soon as you feel “not right”
As many of our clients are already aware, the previous 60 days (overdue) of prime time to outsource debt collection may no longer work well now. When the time came to late November 2022, we received numerous requests to pursue debts that were 30 days or less past due. "They (the debtor) don't pick up my phone and message me not to contact him, I just don't think they want to pay." said one of our clients who entrusted Xservice Debt Collection with a 14-day overdue debt. We were surprised by this client’s tactful decision, and unsurprisingly, we resolved disputes along with it and recovered the debt within a week of debt collection appointment. Lately, after the settlement of this debt, we suspected that the debtor has some business issues and only has very limited cash to pay all suppliers — only a daredevil can make a fortune.
Utilise Personal Property Security Register (PPSR)
PPSR makes a creditor become secured. Put the relevant terms and conditions on your trade agreement, and register your interest as soon as practicable. In the event that the worst scenario happens, PPSR makes your debt an advantageous situation. Furthermore, you’ll have the power to appoint your own administrator or liquidator without going through the court process, which saves you a huge amount of money and time. It also means that you may be able to take control of your debtor at your discretion.
Know your customers (KYC)
KYC has been mentioned in earlier debt collection tips, however, our debt collectors would like to emphasise again that KYC is crucial in preventing bad debts, and recovering outstanding receivables, even if you appoint professional debt collection agencies. KYC procedures may include the following:
· Make sure your customer’s ABN.
· Check their credit records.
· Understand why they chose you (eg if they change supplier because they owed money to the previous supplier).
· Find out their boss’s full name, a valid contact number, email, and address.
· Background check for any guarantor(s).
If you know the above, incorporate them into your current credit management procedures. Or speak to our debt collectors if you have any questions. Xservice Debt Collection is a professional debt recovery agency that has helped thousands of small business owners collect their debts. Our no-upfront-charges approach significantly cuts down the financial risks that businesses bear. Chase debts without worrying about costs, get fully informed with our regular updates and discuss options with you. Speak to us if your debtors are in Melbourne (VIC), Sydney (NSW), Brisbane (QLD) or Perth (WA).