Cost Effective Debt Collecting

24/04/2019

Controlling debtors is an important part of business management. Clients who refuse to pay, or pay late can destroy a profitable business. Debt collection agencies usually charge a hefty percentage, and are often ineffective. They rely on pestering the debtor into paying. If that does not work, and you need to take legal action, you have to pay for the lawyer, as well as the percentage for the debt collector.

Most effective solution is solicitor’s letter of demand, backed up by the threat of legal proceedings.

We have developed a simple online system for debt collection, where you input details of the debt and the debtor, which generates a letter of demand on our letterhead, sent out the same day, for a total cost of $38.50 including GST. We charge no commission.

Where the debtor is a company and the debt exceeds $2,000.00 an effective debt collection technique is to use a statutory demand. This is a notice issued under the Corporations Act giving the company 21 days to pay or face being wound up (unless there is a genuine dispute about the debt). It is a very strong weapon to use where a company is delaying payment for no good reason.

Again, our online system enables substantial cost savings by you inputting the data and submitting it to us. In this way, the total cost of issuing and serving a statutory demand, including ASIC search fees and GST is $176.00.

An essential requirement for effective debt collecting is speed. A stubborn debtor will be much more likely to pay where you act quickly and effectively. By using our system, you are able to issue a solicitor’s letter of demand the same day, or a statutory demand within a few days.

If the debt still remains unpaid, we can commence proceedings for you. 100% of the cost of issuing court proceedings including court filing fees and service fees are added to the debt. Click here to calculate the cost of issuing court proceedings.

To collect a debt online click here.

 

 

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