Cost-effective debt collecting

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.  What is needed is often a solicitor's letter of demand, backed up by the threat of legal proceedings.

 

To solve the problem, we have developed a simple on-line system, where you input details of the debt and the debtor. This generates a letter of demand from us, sent out the same day, for a total cost of $38.50 including GST.

 

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 which gives 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. See our article "Forcing a company to pay a debt".

 

Again, our online system enables substantial cost savings by you inputting the data. In this way, the cost of issuing and serving a statutory demand, including GST and company search fees is $196.00.

 

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 can 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. If you wish to try the system, please go to http://www.somervilleco.com/templates/somerville_1col_flash.aspx?pageID=9249

For more information contact Adam Cutri.

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