Naturally, everyone wants to contract with service providers who are successful at what they do. It means they will provide great results and will bring the most benefits to your business. Read why a debt recovery provider is more effective with legal practice.
Debt collection and recovery firms, differ significantly in their capabilities depending on the resources they have at their disposal. So how can you decide which service provider will be most successful at recovering your debts?
One major point of difference which sets successful firms apart is their ability to offer a complementary general legal practice. This structure has many advantages over stand-alone practices and promotes higher success rates in debt recoveries and collections.
On hand legal advice
Debt recovery providers who work in close association with a legal practice department have access to many of the resources and expertise that stand alone debt collectors do not. Lawyers have a thorough understanding of the legal system and the costs involved in litigation. This means they are better equipped to advise on whether litigation is worthwhile having regard to likely costs and outcomes. They are also up to date with changing laws, processes and precedent cases, meaning they can provide an accurate long range view of possible recovery strategies and novel approaches.
Expertise to assist with complex matters
Disputes involving complex issues such as contractual disputes, securities and insolvencies are generally beyond the capabilities of your ordinary debt collector, who would generally need to seek advice from a third party lawyer. Having legal professionals on hand to provide advice on complex issues means clients can receive a complete service from the one provider. In addition, stand-alone providers might be hesitant to hand on the work to a lawyer in fear of losing out on fees themselves, prolonging or jeopardising recovery of the debt.
Uninterrupted transition to litigation
Often when legal action is needed, time is of the essence and steps must be taken immediately. Having lawyers in close association enables the uninterrupted transition of a debt to the litigation phase without delay, and without you having to shop around to find an appropriate law firm to take on the job.
Complete information availability
Being able to handle both collections and litigated recoveries within the same team enables seamless information flow and availability in both directions. Debt collection providers have access to the knowledge and expertise of lawyers and lawyers have full access to the debt collector’s records and opinions to gain proper background information.
Choosing a debt collection provider with a complementary legal practice can improve the success rate of your debt recoveries and save you money. If you’re interested in making the switch, talk to us about how our complete service – debt collection, debt recovery, legal services – offering can improve your business.