• Xservice Debt Collection

How Debt Collection Agency Works?

If you have outstanding accounts receivables that cannot be collected by yourself, or simply don’t have enough time to do that, you’ll probably look for professionals to help you out. We will introduce the debt collection business here for you, which hopefully to help you to make better decisions.


Debt collectors often work for debt collection agencies, debt collection agency usually works as middleman to help creditors collect delinquent debts – around 60 days overdue as the best time to get started. Most debt collection agencies in Australia charge a percentage to the debts. Debt collection agency collects delinquent debts of all types: commercial (B2B), consumer (B2C), or even personal borrowings (P2P).



Some collection agencies specialize in a specific type of debt, like Xservices, we specialize in commercial debt recoveries. Debt collection agencies may only be able to collect debts that are not statute barred, for examples in Victoria debt collectors can only work with debts aged under 6 years old (this period may be extended under certain situation).


Debt collectors can deal with debts that with or without disputes, although the debt collection procedures could be different, debt collectors with advanced negotiation skills would achieve a higher success rate.


Debt collectors may also refer cases to lawyers to proceed with legal actions, this action may be recommended to creditors with the collection process moving on.


Some debt collection companies may also purchase debts from creditors in a discounted price, this discount usually higher than commission percentage as mentioned above. There are many factors that may influence the price, for instance, debt age and/or whether the debt was collected by other debt collectors previously.


Debt collectors may use skip tracing/investigations to locate debtors, if debt collectors cannot reach the debtor via contact information provided by creditor. Phone and written demands, negotiation and field calls may also be used during the collection process.


Let us know if you have any inquiry regarding debt collections, with Xservices, we spend extra time in studying each case to ensure a higher success rate, and the best thing is, you won’t be extra charged for our higher success rate!


Need more advice about debt collection? Read our blog “Temporary Insolvency Reliefs End on 31 DEC 2020


Consider our “Consumer & Personal Debt Collection” service


Learn more about “Commercial Debt Recovery