Company News | Perth

No Collection = No Commission 

financial report with spectacles

News from Perth’s established debt recovery business

At National Collections, we specialise in debt recovery for businesses throughout Perth, working with clients large and small. So, if you’re experiencing any problems within this area, just contact our experienced team for expert assistance you can trust. We like to keep our clients fully informed about our services and the work that we do, so check this page regularly for all our news and industry updates.

How Time Fly's......

May 25, 2017

It seems like only yesterday since our last post.

At National Collections we have been very busy building a new web site. Not an easy task I might add. These days with all the rules and regulations, trying to capture the attention of our potential new clients, whilst also keeping the content interesting and informative. Hopefully supplying our prospective clients with the information they are searching for. 

(If you have visited our new web site, we would appreciate your feedback when you call).

With the current down turn in the economy, we have found that cash flow within the business world is defiantly having an adverse effect on all businesses. Your credit controller/accounts receivable department should be increasingly vigilant in these times. There is no room for complacency. Give your debtors an inch and they will undoubtedly take the proverbial mile.

It may even be time to seek expert advice. Debt Collectors work alongside their clients, with client authority, together they strive to achieve the best results possible on each task in hand. Our negotiation skills are most persuasive, we have had years in practice. So, if your debtor is constantly making empty promises or avoiding your calls, emails, letters, don’t just let time slip away. An aged balance sitting idle on your ledger is worthless to you. Do something about it. It makes more sense to pay a commission to a debt collector than to sit tight, do nothing and receive no return. If you had a signed contract or credit application form, the debt collector could pursue the commission fee from your delinquent debtor. 

Don’t just sit there……..call us ask National Collections all the questions you can fire at us. We are here to assist. 

Time to Review Aged Accounts

October 5, 2015

As we move into the final months of 2015, it’s time to review your outstanding aged accounts.

Troublesome, aging accounts may need to be handed over to a debt collection agency. If you don’t take action soon, you may find your valued client has found another use for your funds. Staff holiday pay and GST commitments need to be met. Your account could still be outstanding into 2016. Now that’s a very scary thought, isn’t it!

Businesses do tend to wind down their operations at Christmas time, with staff taking extended leave. Some businesses even close for up to three weeks. It may be the end of January before you can make contact with the accounts department, or the person who makes the decision regarding who gets paid first. This could in turn cause extra financial burdens.

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Business Referrals

September 1, 2015

Every single employee in your organisation is capable of getting a referral by listening to the needs of people around them, be it a business or social situation. At National Collections, we find that businesses that are unable to pay their accounts may be suffering from cash flow problems themselves, so it can be a vicious circle.

All your staff members should have business cards. Have you heard of the BBQ syndrome? People talk about what they do, and their experiences with businesses, and the services they have received. Most people talk about their bad experiences, but we don’t want to go there, do we! If your staff are proud of what they do, then let them promote your business by distributing business cards among friends and associates.

Management should keep track of such promotional activity and offer incentives for successful referrals. At National Collections, we offer a % discount to clients who refer new business. This reflects as a reduction in their next annual subscription renewal. A large proportion of our new business comes from referrals, which indicates to us that the service we offer is second-to-none. Our clients are happy with our cost-effective, reliable methods.

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Client Queries – Product Knowledge

September 1, 2015

Client queries usually arise from expectations that are not met, once the client receives a final demand. Finding the source may not be too difficult. Sales staff’s lack of product knowledge is a classic, along with added extras that weren’t explained properly, service expectations and delivery deadlines, to name but a few.

A specific question from a client should be answered by a person specialising in that field. For example, a salesperson may not be able to answer an account query, as an accounts person cannot answer a question regarding legal procedures. Any reasonable person will accept this and surely wait for the department in question to return a call, or email the correct information, rather than be given another person’s interpretation of the situation, which may not be entirely correct.

At National Collections (debt collectors in Perth), we find that by being upfront with clients, regarding our services and costs involved, the percentage of recourse is minimised. Of course, you’ll always get a percentage of potential new clients who have selective hearing. They hear only what they want to hear. Our information is outlined clearly in writing and explained thoroughly. As we are a service provider, we require our new clients to sign an authority of service document, which gives us permission to act on their behalf. It also clearly explains or terms and conditions. We also send our clients a debt collection/credit control kit, which provides information on related services, instructions and protocol.

It’s important to have some sort of agreement in writing upfront with your client, if possible. This should be a credit application form or a contract, which is signed and agreed to before goods or services are provided. At the very least, ask for order numbers or written confirmation of agreement to quotes. By being upfront and making your clients aware of what they are receiving from you and what is expected of them, this in turn will promote a mutual respectful alliance.

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COD – Credit Department

September 1, 2015

COD stands for Cash on Delivery. You would be amazed at the number of COD accounts that end up being sent through for collection.

COD accounts must be paid before goods are dispatched or delivered, so delivery personnel should collect cash before dropping off items. Cheques presented for COD payments should also be cleared before goods are received or services rendered. Dishonored cheques for COD accounts can be an easy trap to fall into, and one of the main reasons necessary for debt recovery actions.

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Credit Department Procedures

August 31, 2015

Make checks on a new/potential client

Do you make any investigation into the credit worthiness of a new/potential client? It could save you a lot of headaches in the future. Don’t be too eager just to get a sale that may turn out to be a potential delinquent debtor. National Collections (debt collectors in Perth) works together with Veda Advantage, allowing our clients access to use their credit reporting and default listing services.

A smart credit department makes sure invoices are issued to clients as soon as possible, and these should contain as much information as they can. This means including order numbers, job details and goods and services supplied, so as not to give cause for dispute. Your payment terms should be clearly displayed and EFT banking details to encourage direct payments. If your client should dispute or question any portion of their invoice, this should be addressed immediately to avoid delaying tactics. Don’t be too eager to raise credits to promote early payment, your client may be stalling for time, and this might just lead to promote tardiness.

Minimise cash flow problems

This can be done by diarising accounts for follow-up, using reminder stickers on statements and phone calls requesting payment. This will encourage your client to process your invoice and payment in a timely manner (hopefully).

Management should discuss strategies, set targets based on expectations of each department and project sales targets. By following these methods, your business will promote a healthy cash flow.

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Credit Department

August 31, 2015

Whether you’re a large corporation or a small business, your credit control department is the mechanics of your organisation. You may have a whole credit department working under a credit controller, although some businesses only have a single person in this role. Or, in the case of a sole trader, you may be it! Each individual has a role to perform. In this situation, if someone is absent or leaves, one would presume a colleague will be able to step in and cover temporarily. Whichever category your business fits into, there are simple rules that you can follow, to ensure efficiency.

Do you have a manual that someone else can follow in order to step in and cover for an absent employee? Every person in your organisation should have a protocol - this applies from boardroom to cleaning staff. No one person should be seen as irreplaceable.

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Debt Collector V Solicitor

July 17, 2015

This is a question frequently asked: Why choose a debt collector and not a solicitor?

A solicitor will issue a notice of intention to sue to your client regarding the outstanding debt. If there is no response, after the required time frame allowed, the solicitor will more often than not recommend a General Procedure Claim (Summons) be issued immediately, against your client. Solicitors usually charge by the hour for incidentals. These may include letters, phone calls, emails, faxes and even time spent looking over files.

At National Collections, we issue a notice of intention to sue, then try to negotiate with your debtor regarding the outstanding debt. Payment plans can be an excellent result if cash flow is a problem. If debts are in dispute, sometimes we can negotiate a full and final settlement figure, which is agreed to by all parties involved. If we do not achieve a result from our normal collection procedures, then a GPC (Summons) may be recommended as a last resort. Costs involved are discussed with our client, and the GPC (Summons) is raised at our clients requested authorisation. National Collections will endeavor to achieve the best results possible for their valued clients.

At National Collections commission is taken on ‘Collection Only’.

No Collection = No Commission and commission is calculated on the amount collected.

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Alleviate cash flow problems

April 23, 2015

By following a few simple steps, you may be able to avoid disputes and delays with debtor payments.

1. Make sure your sales department requests order numbers from your clients and the name and position held within the organisation of the person placing the order.

2. If the client is new, then a Credit Application form should be provided for completion. Late fees and interest must be agreed to in writing and is not something that can be enforced unless your clients agree to by signing a contract or Credit Application form. You may also request a credit report via Veda Advantage just to ensure your new client is not under financial stress or holding an adverse action due to summons against them. (Credit Application forms and access to Veda Advantage are services available to clients of National Collections).

3. Invoices should be issued as soon as possible. Your terms of trade must be clearly visible on your invoices, along with banking details to encourage EFT transfers.

4. Promote early payment by offering discounts.

5. Send out statements and follow up with phone calls requesting payments for overdue accounts.

6. Address disputes as soon as possible. If your client admits to having cash flow issues, offer a payment plan in writing, asking them to commit to regular payments. If your client is avoiding your payment requests and is not happy to enter into a payment plan, you should act immediately.

Debt collectors assist with credit control and collection procedures, however, they do not take over your roll. They work with you under your authority to act on your instructions. To engage a debt collection agency to assist with credit control does not mean you are failing with your accounts receivable. In fact, in this current financial climate we are finding that debtors are becoming more and more resistant to creditors approach. Sometimes it takes a professional approach to make them realize that you are serious about collecting your overdue monies.

Credit Department

February 4, 2015

Gone are the heydays of credit managers sitting in a private office with a handful of personnel outside, longingly looking in. Middle management is often replaced with a ‘hands-on’ supervisor supported by an efficient, motivated, hardworking team. Deadwood is out!

Unfortunately the ‘Credit Industry’ still has a relatively high staff turnover.

At National Collections, we are proud to say, our team remains. Why, when debt collection is a difficult industry to be involved in? That’s easy: At National Collections, we give our employees excellent training. We offer incentives to reach set targets, but most importantly, we treat our team like a happy family unit. We speak to debtors, clients and each other, as we wish to be spoken to ourselves.

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Reduce the Risk of Debt

November 20, 2014

Pursuing unpaid bills can be crucial to the financial health of a small business. It would be helpful if there were a crystal ball that allowed you to predict which clients would turn out to be bad payers. Unfortunately, no such device is yet available. You can’t reliably predict clients’ future behaviour, especially if they’re new customers.

Three warning signs can indicate possible trouble ahead:

  1. Unanswered phones: Before beginning any work for a new client, it may be a good idea to call and ask some clarifying questions about the job. If a client is proving difficult to contact via phone, and not returning calls or answering messages. This could be seen as a red flag. If you can’t contact them before you hold credit against them then what chance have you once you do. Asking for an upfront part payment on the account might prove beneficial and promote their commitment.
  2. Unclear bureaucratic roles: Try to ascertain who approves and pays the accounts to avoid delays. Make sure the account is directed to the correct department and person. Make sure your payment terms are clear. If your invoice ends up with the wrong department, it may end up in the bottom of the wrong in tray. This will delay processing and effect your cash flow as a result.
  3. Bad credit rating: It’s crucial to check on a new client’s credit rating before you enter into a business transaction. We’ve written about how to check a client’s creditworthiness on previous blogs.

Conclusion

You may not be able to determine with absolute certainty that clients will be bad payers.

Careful attention to creditworthiness may head off some difficulties, but it’s important to remember that professional debt collection is always available. National Collections can provide a debt collection/credit control service, so please contact us for more details:

sales@nationalcollections.com.au

www.nationalcollections.com.au

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5 Tips for Increasing Cash Flow

October 28, 2014

The number one concern of every small business is, ‘how do I increase cash flow?’ Without it, employees and bills can’t be paid on time and even one month of cash flow issues can set off a chain reaction that might negatively impact a business’ credit rating and future lending options.

Unfortunately, there’s no magic bullet when it comes to healthy cash flow. Instead, businesses need to put both short and long-term policies in place in order to stabilise profitability and future growth.

These policies can include:

1. Renegotiating with suppliers Start by renegotiating better prices with each supplier in exchange for paying cash-on-delivery. This provides two advantages:

  1. A saving on the company’s cost of goods
  2. Fewer end-of-the-month financial concerns

If you can prevent bills from piling up waiting to be paid when customers pay you, the healthy cash flow cycle will begin.

2. Customer review There’s no such thing as a good client who has bad credit. In other words, it doesn’t matter if the client is loyal or buys frequently if they’re not paying the bill on time. Determine who those clients are and then have accounting contact each to notify them their credit has been frozen and to discuss a payment schedule. When explained diplomatically, these customers will understand that payment delinquencies are having a negative effect on your business.

3. Invoice policies If your current invoicing policy allows customers to pay within 15-30 days after they’ve received the invoice, that means your company is out-of-pocket close to 60 days after the purchase. This can no longer be an acceptable policy, as it impedes cash flow unnecessarily. Payment details should be changed to state that payment is due when the invoice is received. Good customers will not mind the adjustment 

4. The 20/80 rule Did you ever stop to notice that about 20% of your customers make up approximately 80% of your company’s revenue? The numbers may differ slightly by industry, but it is something to note. Providing incentives to these top customers for early and electronic payments can make them even more loyal. Incentives might be in the form of extra rewards club points, a financial discount on the invoice or inclusion into a newly-created VIP club.

5. Payment Options Large ticket items can be billed in two to four instalments, depending on the amount and the projected duration of the job. Requiring the first instalment upfront is standard practice in most industries, and respectful clients will understand.

In summary, cash flow can be increased almost immediately by making any or all of the above changes. Your company is not a bank, nor are you in the debt collection business. Daily efforts should be focused on the company’s mission of making or selling great products or services. Put strong cash flow policies into effect, and it will never again become a concern.

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Payment Plans

October 20, 2014

As we’re all aware, cash flow in any business is of the utmost importance.

If there are no disputes regarding your invoices and the client still has not paid, they may be experiencing cash flow problems. This trend is very prevalent at this time as it’s a sign of the economy. These clients may be more than happy to discuss and agree to a payment plan.

Payment plans must be set up and managed closely, with your expectations clearly documented with regards to values and time frames. Your client should also sign and agree to the payment plan.

If the required payments are not made on time, this may affect your own cash flow within your organisation, putting your business in jeopardy. At this point, STOP all credit to this customer. COD can be used if necessary. If you are unable to rectify this problem, seek the advice of a debt recovery service. They will explain the options available and give you details of costs involved for their services (these may be recoverable from your client).

All customers who are on credit terms should sign a Credit Application Form.

National Collections has a sample Credit Application Form that is in our Debt Collection Credit Control Kit. This is sent to all clients who engage in an annual subscription.

If you have a new client, who has not done business with you previously. It’s good practice to check out their credit rating before you do business. Veda Advantage is the leading provider of credit information and analysis in Australia and New Zealand, and you can register to use Veda Advantage, via National Collections, at special rates.

It’s always smarter to be one step ahead of your clients by being aware of their past business history.

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How to check a customer’s creditworthiness

September 18th 2014

Knowing a customer’s creditworthiness is not an elitist move. It’s a smart practice. One of the most unfortunate situations a small business can encounter is cash flow problems, and often these are caused by clients who don’t pay their bills on time - or at all!

Many small business owners don’t realise the jeopardy created by extending credit, or offering payment plans to clients who have a history of bad credit. Ultimately what happens is that the client’s credit problems become yours. Realistically, anyone can have an accidental late payment once in a while. It’s the chronic abuser you want to identify.

One method of trying to avoid this situation is to implement credit application forms. Ask National Collections about their credit application form service, it’s free to annual subscribers.

Although National Collections provide a sample credit application form, it is up to our clients to implement this into their accounts system. Thus allowing terms to be enforced.

Gathering basic information is essential, along with your customers (ABN) Australian Business Number, and current trade references. Requesting this information is just the beginning. The next step is to call and check references. These cannot always be reliable.

Credit Evaluation Tools

Veda Advantage is a data analytics business and is the leading provider of credit information and analysis in Australia and New Zealand. If you have a bad credit rating, then it’s listed with Veda.

As a client of National Collections, you may register to use Veda Advantage, via National Collections, at special rates. Various levels of credit reports are available on request. Default clients may be listed with Veda, according to their guidelines.

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5 Things a Debt Collection Agency can do that you cannot

September 3, 2014

1. Take the emotion out of the process It’s both annoying and frustrating when you’ve performed a service, or provided goods to a client and then they refuse to pay. Naturally, this means you might struggle to keep the emotion out of your communications and negotiations may break down.

A debt collection agency can communicate on a professional level, in order to keep the matter moving forward to a desirable outcome, in a positive manner.

2. Apply knowledge of processes Once a debt collection agency is assigned to the task, the debtor will realise you’re serious about recovering your aged debt. The debt recovery agency understands both your rights and the rights of the debtor during the recovery procedures.

3. Call on years of experience Recovering aged debt is what they do. A debt collection agency is able to apply their years of experience and expertise. According to the rules and regulations laid down by the Department Of Commerce and Consumer Protection appointed to a licensed and bonded debt collection agency.

4. File and serve GPCs A GPC is a general procedure claim filed in court. When filed through a debt collection agency, solicitor preparation is mandatory in the case of defended actions, where National Collections are unable to negotiate a settlement, which is agreed to by both parties.

The solicitors are instructed, on our client’s authority to continue with ongoing defended legal procedures.

The National Collections legal team has a combined total of 47 years’ experience.

5. Provide advice in regards to your current systems A professional debt collection agency doesn’t stop at collecting aged debt. They will provide advice regarding collection procedures, which may impact and improve your current internal systems.

National Collections supply sample credit application forms to annual subscribers. These forms are designed as a guideline. Forms must be signed and returned, before credit is granted to a new valued client, in order to enforce the terms and conditions therein.

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What are the steps involved in collecting outstanding debt?

August 7, 2014

First of all, let’s quickly define what a ‘bad debt’ is. In simplest terms, it’s a debt that has been written off and is unrecoverable. Sometimes this is inevitable for many reasons. The debtor may have gone into administration, or the debt may be too old. Debt collectors are human too, and you can’t get blood out of a stone!

So what can you do to avoid ‘Bad Debt ’? If the debt goes beyond your normal terms of trade, and you have followed normal office procedures to no avail. Then it’s time to hand the job over to a debt collection agency.

At National Collections (we cannot speak for anyone else), this is our process for collecting your outstanding debt.

1. Annual subscribers are provided with an unlimited number of ‘seven-day commission-free’ demand notices. This allows our client to send a ‘Final Demand’ that looks like it comes from us. These final demand notices are highly effective in eliciting payment, it indicates to your debtor that you are serious about collecting the account. (They show you have a debt collection agency on board and are geared to effectively handle accounts outside your normal trading terms.)

2. If, after seven days, you have not received a response from the debtor, on our clients’ instructions, we will commence our collection procedure. An advice of summons letter is issued.

3. Ongoing communication follows via letter, phone, SMS, email and fax. Field calls may be arranged in the Perth inner and outer metro area at a small cost.

4. We give 100% effort in identifying each debt on its own merits and try to achieve the best results for all involved. Payment plans can also be arranged while legal action is a last resort and only at the client’s request.

5. Progress reports on active accounts keep clients informed and are mailed out at month end.

6. Commissions are due on collection only. No Collection = No Commission.

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What steps should be taken before handing a debt over for collection?

July 14, 2014

When your client finds out their overdue account has been put into the hands of a debt collection agency y, it can be a traumatic experience, especially if further costs are involved. However, if you have followed up on the outstanding account to no avail, it’s best to let a third party step in.

Before you do so, however, here are the steps we recommend you have taken:

  1.  Make sure all your invoices have been received by your client. Emails as we know (although we cannot live without them) don’t always arrive on time - or at all!
  2. Speak directly to the accounts payable clerk to see if your invoices are scheduled for payment. Ask when the next payment run is. Ask what the method of payment is and if they have your banking details for EFT transactions.
  3. If you’re not satisfied with the result, ask to speak to the financial controller. Go to the top if needed and speak to the boss – find out if the debt is in dispute. Maybe your client has cash flow problems, and a payment plan could be a good result.
  4. Emails and letters are easy to ignore. Make a phone call, talk to the client direct, talk to the boss.
  5. Try to get a commitment as to when they can pay and how much they can afford. Sometimes only the ones who push the hardest get paid.

Once you’re satisfied that you’ve exhausted all avenues, it’s time to call in the professionals. A debt collection agency can assist you and is not engaged to replace you. They’ll work on specific tasks as requested and offer advice, helping you to incorporate procedures so your cash flow is back on track and your accounts are back within a manageable time structure.

There may be a debt collection agency that specialises in your industry or geographical location.

Ask about costs, commissions and fees. Make sure they’re upfront and explain the procedures thoroughly. Make sure the debt collection agency you choose is a professional communicator, as that’s who will be representing your business.

Handing an unpaid account over to a debt collection agency need not signal the end of a viable working relationship. The agency should ensure your client is dealt with in a fair and sensitive manner and will aim to achieve a great outcome for all parties. Keeping in mind of course that you the client, make the final decisions as to whether legal action should be pursued, taking into account all costs involved.

Three Things a Debt Collection Agency Can Save You

June 25, 2014

The perception of a debt collection agency is just that, an agency that collects debts. We’d like to think we offer so much more…

TIME, STRESS and MONEY  are three words that would be all too familiar to anyone working in the field of accounts. Whether you are a Financial Controller, Accounts Receivable clerk or a bookkeeper.

So let’s take a look at TIME:

Your time, it is so very precious. Chasing slow payers is not income generating. Yes, you will reduce your debtor’s ledger, but the money you’re seeking is for a sale that has already been made, therefore, you’re backtracking.

Save you STRESS:

Dealing with ‘Joe Public’ has a multitude of variances including the very nice, the so-so and unfortunately, the nasty. There are professional debtors, who wait to receive a debt collection notice. There are nuisance clients who will pick and poke at the quality of your work, product or service and cause no end of trouble when it comes to payment. Do you need to add this daily STRESS to your workload?

Save you MONEY:

Add up all the hours spent on chasing a debtor’s ledger. Multiply that figure by your hourly rate, add a bit of pain and suffering, and for good measure, a dash of credit squeeze.

A debt collection agency can assist you by dealing with the problem clients.

One thing to remember, a sale is not a sale until the account is paid!

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Scammers Fraud and Deception

October 21, 2013

This not only happens to individuals being tricked out of their savings, with bogus tradesmen asking for upfront deposits for work they never intend to do - it also happens at corporate/business levels too! Watch out for scammers.

We’ve been approached not once, but twice in the last 12 months, via email, from a supposedly well-established overseas business. A request was received to quote for debt recovery, and to receive monies on the client’s behalf. Paperwork was completed, authentic looking documents were provided. These included: invoices, consignment notes and delivery dockets. Strict instructions were given not to contact the debtor, as they would contact us. We, very cautiously, played along. Not surprisingly a couple of weeks later, a courier arrived at the office with an envelope. The envelope contained a bank cheque. The sender could not be traced, and the bank cheque turned out to be fraudulent.

A couple of things to lookout for:
1. Correspondence containing broken English and bad grammar. Don’t be fooled by a great-looking website. You can’t trace the origin of an email address. 2. Do not give out your banking details. Never release funds on un-cleared deposits.

If it sounds too good to be true….It almost always is!

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END OF FINANCIAL YEAR

May 16, 2013

THE END OF THE FINANCIAL YEAR June 30, 2013 IS FAST APPROACHING!

Before you write off any debts, try National Collections the debt recovery specialists.

A debt collection agency may be able to offer a solution, either by collecting or negotiating a settlement. Most debt collectors offer their services on a ‘Commission on Collection Only’ basis.

Your debt may be fully or partly recovered, instead of having to write it off.

Most importantly, National Collections will offer free advice on any credit control/debt collection matter.

Ask National Collections about our Debt Collection/Credit Control procedures, we can tailor make a package to suit your business requirements.

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Debtor Change in Attitude

February 11, 2013

We’re finding lately, that debtors’ attitudes are changing. Whereas once, they used to ask for more time to pay, or for a payment plan, now they just say: ‘You’ll get paid, when I get paid.2

This response can put you on the back foot. It is, in fact, a very clever or should we say, devious, response. So, where do you go from here?

These debtors are obviously going through tough times. Lots of businesses are facing hard times, with cash flow a huge problem right now. Simply put - they pay the people who push the hardest and sometimes this only happens when a debt collector steps in!

The first four months of the year is the busiest time for debt collection agencies, so don’t wait until it’s too late! Administrators or receivers may be appointed, and it doesn’t cost anything to get some advice.

Call and ask all the questions you need, we may have all the answers.

If not, we can point you in the next direction.

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Credit Application Forms – Costs

November 22, 2012

The question most commonly asked in debt collection is: ‘Can my costs be charged to, or recovered from my debtor/client?1

The answer is:

Costs cannot be enforced with regards to debt collection commissions unless terms and conditions have been read and signed by your client, before the debt is incurred.

This can be in the form of a Credit Application Form/Contract/ or signed Quotation.

Most debt collection problems can be avoided at the time when credit is actually granted.

The law states that terms and conditions must be agreed to before the debt is incurred. Your client must physically sign and date a document stating they have read and agree to these terms.

  • The debtor is liable for all recoverable legal, solicitors and court costs in case of legal action over $10,000.00
  • Under $10,000.00 the solicitors’ costs are not recoverable from the debtor/client.
  • The debtor is responsible for payment of most of the debt collection agency costs, such as commission fees, etc
  • In the event of bankruptcy, receiverships or liquidations, the goods may be repossessed.
  • You are afforded personal guarantee protection from the signatories of the credit application form, in case of a change of trading name.

Credit Application Forms are available to annual subscribers of National Collections at no extra cost.

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CA$H FLOW

November 1, 2012

Cash Flow – Slow Debtors – Christmas

Traditionally, the above three come at the same time. Ca-ching! That’s the sound of your client’s depositing payments into your bank account.

A business can fail because of a shortage of cash – even while profitable. It’s your money they are using to promote their business and pay their staff bonuses. You need that money too! Not only to keep your business afloat and purchase new equipment but to honor your commitments.

How do we start?

1st You should have Credit Application Forms signed by your clients (Credit Application Form information will be covered in a blog of its own… soon on this site, so keep a lookout for it).

2nd Make sure your invoices include your payment terms.

3rd EFT details for your clients to pay directly into your bank account.

All business should have a procedure to follow when it comes down to chasing late/slow paying clients.

You can purchase stickers, friendly reminders or be a little more persuasive with final demands.

Most importantly, phone your debtors - talk to them. Find out the real reason that they’re holding off on payment, as there may be a dispute you can settle. Talk to the manager and get to the core of the problem. Payment plans can also be a good solution.

If all else fails, then you need to contact National Collections.

Call us today on 08 9202 1000 for more details about our debt recovery business in Perth.

No Collection = No Commission

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Phone:  08 9202 1000

After Hours Mobile:  0417 957 443

After Hours Mobile:  0417 905 402

Fax:  08 9227 8062

Email:  sales@nationalcollections.com.au

Address: Level 1, 10 Nash Street (Piccadilly Square South) Perth WA 6000

Postal Address: PO BOX 8461, Perth Business Centre WA 6849

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Areas Covered: Perth Based - Collect Australia Wide

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