Major categories of debt that we recover?
- Bad cheques and overdrafts
- Commercial loans
- Commercial judgements
- Retail and department store accounts
- Credit card accounts
- Overpayment refunds
- Unpaid invoices
- Private loans made to individuals
- Rented property debts
Three classifications of debt
- Overdue account - waiting for payment for 30 days
- Long overdue account - normally 60 days
- Bad debt accounts - overdue for 90 days or longer
When is the right time to hand over accounts?
Generally, if an account is 90 days and over. At this point, most creditors have already broken the terms and conditions of the credit granted and the relationship has soured. By now, the debtor has received all statements and letters and the creditors have also expressed its concerned lack of response for payment. The writing is on the wall - the debtor has a cash flow problem. Be that as it may, a collection problem exists and the account should now be placed with a collection agency.
The following are indications of serious cash flow problems and are good reasons to hand over earlier than the prescribed 90 days:
- "CHEQUE IS IN THE POST!" Most of us know this one. Payment is promised but the delivery thereof is a hoax.
- TELEPHONE NUMBER DISCONNECTED. The quicker you investigate and follow up the better your chances of recovery.
- "REPEADTEDLY REQUESTS DOCUMENTATION" This is a common practice and is mostly used when debtors want to play for more time.
- 'I WILL TAKE CARE OF THE ACCOUNT" but refuses to provide a specific date and time of payment.
- BROKEN TWO OR MORE PROMISES - Indication that debtor could not manage to raise the funds and the quicker you get in line the better your chances.
- I KNOW I RECEIVED THE GOODS/SERVICES BUT WHOEVER IS RESPONSIBLE - In many cases like in divorces this phenomenon occurs. The one party incurs the debt and refers it to the other party to pay. These disputes are not easily delt with and tact should be used when confronting the debtor.
- "CAN'T PAY - DO WHATEVER YOU WANT". In most cases this is only a treat with the expectation for you to forget about it.
- RETURN TO SENDER MAIL - clear indication the debtor has absconded
- REFER TO DRAWER CHEQUE - Debtor in financial difficulty.
- DISPUTE ARISES WHICH WAS NOT RAISED PREVIOUSLY.
- DEBTOR CLAIMS TO BE UNEMPLOYED - if in doubt a very good reason to hand over.
Why use a collection agency?
It is proven, the minute a collection agency gets involved the debtor knows that collection of payment has now become a reality and priority and the sooner he pays the lesser the pressure. Why now, research shows that THE LONGER OUTSTANDING THE ACCOUNT - THE HIGHER THE RISK AND CHANCES OF NON-RECOVERY.
Requirements before we can start working
We want proof that the debt is valid by means of the following:
- Detailed copies of invoices, statements, C.O.D invoices, delivery notes
- Copies of any agreements, bank statements or any other written acceptance of the agreement between yourselves
We require any information regarding the debtor whether old or new.
We want to see the following:
- Capital amount - as per the agreement
- Interest - what is the agreeement and detailed calculation
- Fees added - as per your agreement
- Service date
- All payment amounts and dates
- All credits be applied
Description of Service
Debt collection is time consuming and has become a specialized field. Our success is in the continuous follow up procedure that causes immense pressure and responsibility upon the debtor to acknowledge liability and ultimately to settle the debt. Here persistence is our trademark. There are two basic collection phases used namely our standard collections and legal collections. All accounts follow the standard collections phase and should get paid by the completion of this phase. However, should the debt still be unpaid the debt will follow into the legal collections phase. After registering the debt on our database we start with an intensive strategy containing the following: letters, telephone calls, faxes, personal visits, enquires, interviews and any other way of personal contact. During this phase the whereabouts of the debtor will be traced, confirmed and updated. A payment plan will be negotiated and the financial position of the debtor established. Ultimately, settlement of the account. Should this not be the case the next phase of legal collections will follow.