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  • Xservice Debt Collection

Why Should You Outsource to Debt Collection Specialist

First of all, businesses should try to recover outstanding debts internally before use debt collectors. If you don’t recover debts after:

1) Friendly reminder(s); and

2) Final notice

Then you might decide to outsource your debt recovery to a debt collection specialist (agency).

Use debt collection agency goes one step further to recover your debt. It gives a clear signal to the debtor that you do not take the debt lightly and have decided to hand the matter over to professionals. This may strain your business relationship with the debtor, however sometimes the money you are owed could be more important. Here are three things to consider when you decide to use debt recovery services.

Outsourcing debt recovery to debt collection specialist

1. At what age should I hire debt collectors?

Disregard the term you offered, approximately 50-60 days overdue are the best time proceed to debt collections. Because businesses should have tried all means internally at that time, proceed to debt collections agency ASAP to ensure a good winning rate as recover bad debt is not always an easy process, the longer the debt sits, the less likely to get your money back.

2. Is there a minimum amount for debt collections?

While every debt collection agency is different, generally the debt needs to be over the minimum charges, so it is cost-effective. There are debt collectors work on a no win no commission basis, however many of which charge a membership/administration fee. Speak to your debt recovery agency first before engaging, make sure is there any fees or hidden costs on top of their commissions.

3. How long will professional debt collections services take?

Understand that the process of debt recovery can vary depending on how the debtor responds, and the process usually takes longer if we have to rely on traditional post to deliver letters, whereas it can be just a few days for success debt recovery if we are able to deliver letters electronically.

If you still decide to hire a debt collector after considered the above, then:

1) Find out the right legal entity you are trading with (the debtor), including but not limited to their ABN, full name of director, and contact details.

2) Speak to your debt collection agency to see what else they need.

3) Package files for each debt and send to your collection agency.

4) Debt collectors like Xservices will keep you fully informed of the progress.

Consider to hire a professional debt collector? Book a free consultation session with Xservices.

Need more advice about debt collection? Read our blog “Customer or Collection?

Consider our “Receivable & Credit Management” service

Learn more about “Commercial Debt Recovery Melbourne


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