To manage your company's debt recovery process, you must first understand the approved guidelines for debt collection Adelaide as established by the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).
Once a debt is overdue, the ideal outcome for your company would be for it to be settled without having to escalate it through debt collection Adelaide channels such as debt collectors, debt purchase companies or a SA small claims court. However, if it becomes apparent that the process cannot be managed in house, you may need to enlist the help of a reputable debt collection agency.
It is important to establish the methods a third-party debt collection agency will use in order to recoup your money. It should go without saying that embarrassment, demoralisation or intimidation are not acceptable tactics. Similarly, you should be reassured that the debt collectors will not misrepresent themselves to the debtor, will not reveal the debt to third parties, and will not misrepresent either themselves or the potential legal outcome should the payment not be settled.
While all companies are understandably eager to resolve overdue debt as quickly as possible, any contact debt collectors make with a debtor on your behalf should fall within the boundaries of what's necessary and reasonable. The ASIC and ACCC recommend no more than ten contacts per month. Contact should also be with specific intent, such as setting up a payment plan or updating the debtor regarding the status of their account.
At Business Credit Express, we believe our world-class credit reports - available for sale online - may help to minimise your exposure to bad debt. By reviewing one of our credit reports - suitable for businesses of all sizes - before committing to a new business endeavour, you have a greater chance of identifying a chequered payment history.
Would you like further information regarding one of our reports? Please call a Business Credit Express advisor on 1300 921 621 or email firstname.lastname@example.org.