Boston Commercial Services Pty Ltd (ABN 87 114 658 070) CAPI Licence Number 409 456 759

You are here: Home / News / Ask These Questions to Determine Your Collections Process

Ask These Questions to Determine Your Collections Process

Do you have an elevator pitch for your business? It’s defined as a succinct description of your unique selling proposition (USP), ideally in 30 seconds or less. It can be helpful for networking events, or for turning casual run-ins into business leads. It can also be beneficial to your debt collection policy because the way your business is set up has a direct influence on how your payments are structured, and what you can do to recover them.

For example, a clothing retail chain shouldn’t have an issue getting paid, because customers pay before they can take anything home. However, they may have problems with shoplifting, or with customers who buy items, wear them once, then return them and demand refunds. On the other hand, the retail store’s suppliers may stock the shop and not get paid until the clothes are off the shelves so that the return-and-refund matter can be a real problem for their bottom line. Here are some questions you should ask yourself to see where you stand.

Introduce yourself

It goes back to that elevator pitch. When you meet someone new in your business capacity, who do you tell them you are? Are you a firm that supplies books to school kids, a garage that services truck fleets, a medical practice that serves military veterans? Do you primarily serve individual customers (B2C) or are you ‘support staff’ for another business (B2B)? Concerning this, what’s your primary payment model? Is it cash on delivery, payment in advance, clearance in 90 days, or ‘you get paid when I get paid?’ These are essential considerations not just for you but also for you chosen debt collection agency.

What sector(s) does your business belong to? A grocery store can be categorised as FMCG, stationery, food and beverage, fast food, kids’ supplies, and much more. Their customers pay immediately, but their suppliers probably have to wait a few months. A lawyer is more likely to have contingency agreements, meaning their clients only pay if they win their cases, so debt collection looks completely different in their eyes and their debt collectors need a different approach. Contractors or architects use a tiered payment plan. Customers pay enough to buy raw materials but might not get their balance until construction is complete.

Assess your business size

You might think this is based on whether or not you need to outsource debt collection, but that’s not necessarily the case. If you’re self-employed or you run a sole proprietorship, you may decide you can’t afford to hire a debt collector. However, you’re the only one involved in the day-to-day running of your business, so any time you waste chasing cheques is time taken away from finding new customers and developing commercial products.

It may actually cost you more not to hire a debt collector. At the other extreme, a massive company with hundreds of customers might have millions in outstanding debt, and once that kind of volume is involved, then recovery discussions are more likely to be mediated by debt collection lawyers and may include injunctions and property seizure from the outset.


Read Also:

Get In Touch

Get an obligation free assessment now


Get in touch with us

Talk to our experts in Debt Recovery, Legal Services and Finance Solutions

admin 7:41 pm
  • I have worked closely with Boston Commercial Services for over twenty years across four different companies and would not work with anyone else in regards to helping me with my outstanding accounts. Whenever I have started a new role, the first thing I am asked is, “How would you go about cleaning up our accounts receivable ledger?” My answer is always the same – “The first thing we need to do is call Boston Commercial Services”.

    Voytek Bradford

    Freedom Foods Group Limited (National Credit Manager)

  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services prides itself in offering specialised, professional services, through a highly experienced team of debt collector, with personalised client attention.