Cost-effective debt collecting
Debt collectors are often ineffective and usually charge hefty commissions. Solicitors are more effective but can be more expensive. Our online system solves the problem.
Effective debt collection
Controlling debtors is an important part of business management. Clients who refuse to pay or pay late can destroy a profitable business.
Debt collection agencies usually do no more than try to nag and pester the debtor into paying, then take a large slice of the debt if the debtor pays. If the debtor doesn’t pay, the debt collector usually calls in solicitors, so you end up exposed to the debt collector’s commission and the fees of their solicitors.
A much more powerful debt collecting technique is to issue a solicitor’s letter of demand, backed up by the threat of legal proceedings.
Our online system
To solve the problem, we have developed a simple online Debt Collecting System, where you input details of the debt and the debtor. This generates a letter of demand from us, sent out the same day. The total cost of $38.50 including GST, which you pay online. Click here to view a sample letter of demand.
Timing
In debt collection, timing is everything. The worst step you can take is to make a threat and not carry it out. It gives the debtor the message that your threats are empty, and that they can go on ignoring you.
An essential requirement for effective debt collecting is speed. A stubborn debtor will be much more likely to pay where you act quickly and effectively. By using our system, you can issue a solicitor’s letter of demand the same day. You can also issue court proceedings within 24-hours.
Our letters of demand require payment within 7 days. This usually works. However, if the debtor still does not pay, you should take action immediately after that seven-day period. That way, you are giving the debtor the clear picture that you are determined to take them all the way, and that they should pay now, to avoid ending up paying more than the original debt, for costs and interest.
Issuing court proceedings online
If the debt still remains unpaid, we can commence proceedings for you. Again, you can launch the proceedings using the online system on our website. That website also shows you exactly what it will cost to issue the proceedings, including court filing fees. 100% of these fees are added to the debt.
If you wish to try the system, please go to Online Debt Collecting
For more information contact Taylor Schrader or contact us on 9923 2321 or enquiries@somervillelegal.com.au