What You Need to Know About Debt Collection

When someone owes your business money, it can be difficult, frustrating and time consuming to collect it. As professional debt collectors in Sydney, we find that bad debt is sometimes thought of as something that goes hand in hand with running a business. Bad debt can, however easily be minimalized. Here are some steps to take.

  • Remain, Professional

Always remain professional when dealing with your customers about unpaid debts. It is advisable to send an email or letter out as a first point of contact. If you do not receive payment, you may need to telephone the customer and communicate further with them.

Stay with the topic of debt collection and always ask for a firm date for payment, and ask the customer how they will be paying – by the electronic funds transfer, pay or cheque for example. Do not listen to flimsy excuses for lack of payment, or give up when the customer refuses to return your calls.

  • Have a Good Debt Collection System in Place

Have a structured debt collection system in place, and have it put in writing. Make this system easy to follow so that if you are away another staff member can organize debt collection. This may involve:

  • An initial letter
  • A follow up phone call
  • A letter of demand
  • Referral to a debt collection agency
  • Make a Note of All Information Relating to the Debt

Keep records of all information relating to the debt. This includes copies of invoices, dates that the fee was incurred, notes relating to every letter and phone call made in regards to collecting the debt, and full details of any promises to pay. Keep a note of any messages that have been left for the client.

  • Contact Professional Debt Collectors

If you do not receive payment for the amount outstanding, the next course of action is to refer the matter to good debt collection lawyers. Professional debt collectors have the experience and systems in place to find a solution to your problem.

Simple debts are renowned debt collection lawyers in Sydney and surrounds. Contact us for more information on our debt collection process today.

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