Businesses need to get money for goods and services provided to keep expanding. While some customers pay their bills on time, others are less dependable, leaving with unpaid invoices. Customers are supposed to pay on time, but this isn't always the case. You might not have the time to follow up debtors frequently or have run out of internal methods to chase payment. A debt collection agency service might help your business if you were unable to get your money back.
What is Debt Collection Agency
Also referred as “debt collectors”, debt collection agencies are independent businesses who pursue unpaid debts from borrowers or customers on behalf of another business - the creditor. These overdue bills may arise from any of the following:
personal, commercial, or car loan;
utility bills;
wages or contractor payments;
credit account for general business trading.
How is Debt Collection Carried Out?
Debtors are generally informed by debt collection agency through phone calls or written notifications. You will need to provide the agency with information about the debtors, including their contact details, such as ABNs, names, emails, phone numbers and addresses. Occasionally, your debt collectors may also request the debtors’ relatives' or partners' contacts in the event that the debtors cannot be found.
Why work with debt collection companies?
There are many reasons that most business owners are aware of, such as:
this debt couldn’t be recovered internally—by receivables staff; or
You don’t have enough time to keep following up on this debt; or
Just want to get rid off the hassles without forgiving those debts.
Other potential reasons to hire debt collectors that you might want to think about:
Get advice from debt recovery professionals about your existing debts, and how to avoid future bad debts.
Utilise professional resources from a debt collection agency to recover your money quicker and more effectively.
Get protected legally—there are certain rules and regulations specifically governing debt collection, what can and cannot be done. Debt collectors are trained in the relevant rules, so you won’t be counterclaimed for breaching debt collection laws.
Xservice Debt Collection is a professional debt recovery agency that specialises in commercial debt collection. If you are looking to hire a reliable and active debt collector, speak to us to find out our expertise. Head officed in Melbourne (VIC), our services cover Sydney (NSW), Brisbane (QLD) and Perth (WA). Book a free consultation session if your debtors are in these four states.