When an entity owes you money, it can be a little uncomfortable on both sides of the equation. You need your debt repaid because it’s affecting your cash flow, and you may be feeling uneasy about it. Your debtor is probably looking for ways to keep up their end of the bargain, so they may not be having the best experience either. This can make for an unpleasant experience all around, but there ARE ways to ease the process.
Your best option is to hire a debt collection agency. Because they have professional experience in collecting debts, and because they are a third party with no personal stake, so they are further removed from the situation. This allows them to be rational and objective, leaving their emotions out of it and vastly improving your chances of successful debt recovery.
However, to keep the process civil and amenable, certain regulatory guidelines apply to debt collection. They are issued by ACCC (Australian Competition & Consumer Commission) in association with ASIC (Australian Securities & Investment Commission). These laws are intended to protect debtors, but they can help creditors as well.
What the debtor should do
In many situations, a debt collector begins from a defensive position. Unfortunately, the debtor does too. To de-escalate the situation, a debtor can help ease their creditor’s mind by not actively trying – or seeming to – avoid repayment. This puts creditors on edge, so debtors should be pro-active.
The moment they realise they are in difficulties, as scary as it may be, they should approach their creditor and explain the situation. Be honest and re-negotiate payment terms, pointing out debilitating factors (like loss of income, delays from your debtors, and competing debts you might have). Since a debtor may have a hard time figuring this out on their own, they are advised to get help from a debt counsellor or financial advisor.
What a creditor should do
In cases where the debtor doesn’t make the first move, the creditor should hire an expert to mediate. When you’re looking for debt collectors in Sydney, pick up the phone and call Boston Commercials. We apply discretion and legal services, offering you a smooth, stress-free debt recovery process for everyone involved. We will contact your debtor under the legal guidelines of debt collection.
We protect the privacy of the debtor by verifying that we are speaking to the actual debtor. We do this at the start of every phone call. We also ensure that we only call between 7.00 a.m. and 9.00 p.m. on weekdays, or 9.oo a.m. and 9.00 p.m. on weekends. We never call on holidays, and we never visit debtors at home unless they ask us to.
Along the same lines, we restrict communication – by phone and email – to ten times a month as per the statutes of ACCC. We use the communication channel that the debtor prefers, so – for example – we avoid calling them if they have explicitly said they prefer emails.
For further advice and assistance on debt collection in Sydney, call Boston Commercials today on 1300 668 699.