Debt Collectors are Necessary Evil – an evil that must be allowed for a greater good to result.
Lets face it, (in most cases) if you need to call in the Debt Collectors, then in my opinion, YOU have done something wrong!
Let me see, how close am I? You don’t have a purpose written Terms of Trade document. If you do, then you either didn’t get your customer to sign it, or YOU haven’t enforced its provisions, or acted quickly enough. Or maybe YOU “Delegated” responsibility to an office junior expecting a miracle?
However, we hope that you can learn from the experience.
There are many reasons (and excuses) why we don’t get paid. And often these are just OUR excuses. The Customer may have just one; they either ‘can’t’ or ‘don’t want to’!
Lets take a quick look at these:
- They can’t because they have no money – not usually much you can do about this
- They don’t want to because you didn’t deliver, or they dispute the invoiced amount in some way!
- They don’t want to pay because YOU can’t do anything about it if they don’t – no signed paper work / your too nice!
So the next time you experience problems getting paid, ask yourself these questions:
- Did you ask them to sign a contract or Terms of Trade?
- Did you ask the director/s or owner/s for a personal guarantee?
- Did you perform a Credit Check AND check out the references that they provided?
- Did you monitor their payment behaviour during the course of business?
- Did you follow your Credit Management Plan / timetable for debt collection?
- Did you inform the customer of your Credit Policy?
- Did you and / or your staff stop credit at the earliest indication of problems?
- Have you and / or your staff maintained communication with the Customer?
- Were you being Mr/s Nice Guy and let them slip out to 90 days – and now you can’t get them back?
Neglecting to do just one of these could spell disaster – how many did you do?
Outsourcing Debt Collection to a specialist third party
By Law a Debt Collectors can only be used for accounts that are 60 days or more overdue. Outsourcing debt collection to a specialist third party means you can direct your resources and focus on your core business – saving time, money and frustration.
Debt Collectors should take the stress out of your hands and make sure you get paid!
Shark Patrol no longer offers a debt collection service, however we are happy to share with you the names of the debt collection companies that we have partnered with in the past.
Accounts Enforcement Limited
Phone: +64 9 302 0537
ICMS Creditsystems Limited
Phone: 0800 332 867
Another very useful resource is the Ministry of Justice page: Collecting your civil debt
Debt Collection Methods