Credit Control FAQs

Sometimes I feel embarrassed chasing up debt. What should I do?

Be persistent, and don’t feel embarrassed to request payment. Remember, the account is overdue.

How long is too long to allow a customer to pay their debt?

Don’t let your accounts exceed 90 days overdue. The longer the account is overdue the less chance you have of collection.

When chasing up debt, what method works best?

Vary your methods of collection, using mail, email, faxes, telephone calls and SMS messages.

How soon do I need to refer to a debt collection agency?

The debt should be referred at either 60/90 days based on 30 day terms.

Are debts greater that 6 months old more difficult to collect?

Yes the longer you leave a debt, you more difficult it becomes to collect and if you leave it this long the Company or business may be insolvent and therefore you will be unable to recover your debt.

When it comes to terms, what should the process be with new customers?

When you open a new account, it is a good idea to formally notify your new client in writing. Serve notice of your terms and conditions of trade. Explain your settlement terms in clear, direct language and indicate how you will expect the account to be treated.

If a customer requests copies of invoices is it my responsibility to act quickly?

Co-operate quickly if there is any query or your customer requires copies of invoices.

Do I need to perform credit checks?

If you provide credit to customers for amounts exceeding $2,000.00, we recommend you do credit checks, or you should at least get 3 trade reference checks and confirm that the ABN and ACN they give you is correct.

What is the minimum value debt that JMA Credit Control will collect?

For one-off debts, the minimum amount we will accept for collection is $400.00.

How long does the collection process take?

Due to the individual circumstances of each debt, we are unable to quote an accurate recovery time. We try to recover your debt/s without resorting to legal action, but if this step is required and
approver by you, it may take 6-8 months before a result can be achieved.

Once your debt is lodged for collection, the process starts the same day, and we apply constant pressure. Our clients can quickly obtain up to date information on their accounts via the online client service, 24 hours, 7 days a week.

If you cannot collect my money either via letters or phone calls will it automatically go legal?

If your debt is not recovered as a result of our collection letters or telephone demands, we may recommend legal action to recover your debt. Legal action is only taken with your approval, and is subject to our current scale of costs. For debts under $10,000.00, 60% on the costs are deferred until we achieve a result.

How many debts can I submit for collection?

When you are established as a client of JMA you may submit unlimited debts for collection.

Can JMA list a credit default against a debtor?

Due to the Privacy Act, we cannot lodge defaults against individuals or divulge information stored on its database to a third party. We can however list on default on your behalf against a business
or company and the cost involved is $40.00.

At what age can a debt still be collected?

Debts up to 6 years old can still be pursued. If your debt is over 6 years old it is deemed to statutory barred, and therefore cannot be recovered.

Can I include and recover collection costs from my debtors?

The only way you can expect to recover costs is to have proper Terms and Conditions of Trade in place. Your customers need to be aware and agree that you may charge late payment fees, interest, legal and recovery costs as defined within the Terms of Trade for any accounts not paid within the agreed credit terms.

Do I have to pay commission if the debtor pays the debt to me?

Once a debt is referred to us for collection a debtor will often attempt to avoid any our collection letters and telephone calls. Once a debt is lodged, any monies paid by the debtor directly or indirectly shall be subject to commission charges.

When does JMA refund collected funds to me?

We send you weekly refunds if the amount is over $10,000.00, and if the amount is over $2,000.00, the refund will be sent to you in the middle of the calendar month on a Friday. Refund amounts collected during the month that are under $2,000.00 will be sent to you in the first week of the following month.

Ask an Expert

Debt collection can be tricky. That’s why we provide this service to make things easier for you and your business. Please fill in the form above so we can answer any questions you may have.

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1300 272 164

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