Operating a business in Australia is an exciting venture. Serving your clients with top quality products or services can be very rewarding. However, the sustainability of business depends on maintaining positive cash flow. It is important for the health of your business that your clients pay you on time.
The not so pleasant side of business is following up unpaid accounts, it is time-consuming and often discouraging. It can also take your attention away from your core business. This is why many companies contract debt collection agencies in Sydney. A reliable debt collection agency can restore your peace of mind and ensure you get paid.
Debt collection is a sensitive profession and you must ensure that you are working with a reliable agency. An incompetent debt collection agency may end up taking too much time or using unethical means to recover your debts. In this article, we focus on a few features that can help you identify a reliable debt recovery agency in Australia.
1. Is the Agency Licensed
The first sign of a debt collection agency’s credibility is the type of license it holds. A valid license is evidence that the agency is answerable to a higher authority.
In Australia, a credible debt collection agency should hold a master Commercial Agents and Private Inquiry Agents License (CAPI).They are issued under the CAPI Act of 2004. Without this license, a debt collection agency’s activities are limited and they may not be able to fully serve your needs.
2. Legal Representation
Challenging debt recovery proceedings often require the participation of lawyers. The lawyers’ engagement can vary depending on the complexity of the case. This can range from preparing legal documents to representing your company in court.
A reliable debt recovery agency should be in partnership or own a legal firm. Debt collection agencies that don’t have in-house lawyers may need to hire them at an extra cost. Also, an agency that does not have the backing of a law firm may be limited in its ability to recover your debt.
Boston Commercial Services relies on the legal services of Dejure Commercial Lawyers. The two are part of the Boston Group which provides a range of quality professional services to Australian businesses. These include debt recovery, legal services and financial solutions among others.
3. Mutual Compatibility
Developing a new client or business partner essentially depends on how well you relate to each other. Compatibility in business makes it easier and more enjoyable to work together. You need to make sure that you choose a debt recovery agency that is a good fit for you. Here are a few questions you should ask to find out if you are a good match.
- Do you specialize in personal or commercial debt?
- What sizes of claims do you typically process?
- Do you offer a “No Collection, No Commission” Service?
- What are your collection practices?
- How do you engage the debtors?
- What is your average debt recovery period?
- How do you handle litigation proceedings?
There are many other elements to consider when choosing a debt collection agency such as their track record, customer reviews, professional fees and others. Doing your due diligence early on is important because it can give you the confidence to establish long term contracts with the agency.
Boston Commercial Services is a eminent debt collection agency in Sydney. We are the leaders when it comes to trust, professionalism and the effective collection of unpaid debts. Call us today on 1300 668 669 and put a stop to outstanding debt and get back to business, before it’s too late.
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