Chasing a debtor in order to recover your hard earned money is never a pleasant experience. Whether they are avoiding their payments because they can’t afford it, need more time, or are just professional debtors, it’s never a pleasurable task. These people exist in every country in the world and Australia is no exception.
The difficulty with chasing a debtor is that it requires valuable time and resources as a business usually has to allocate a portion of their human and financial resources. Of course there are other ways of extracting your rightful payment out of a debtor but often it’s a very hit and miss situation. That’s why it’s important to remember that when such an unfortunate situation arises you can utilise the services of debt collection companies.
Debt Collection Companies – Advantages
Debt collection companies are not a new invention in the modern age, they have existed for hundreds of years; basically as long as loans have existed. Whether it was a single individual in a seedy backroom with manpower to spare or the professional operations we see of today they have become a crucial part of business in Australian and global society.
In Australia there are many of these companies, from huge conglomerates with head offices in cities like Melbourne, Sydney, and Brisbane to the local small town enforcer. Choosing a company in the local area has advantages. If your business is based in Melbourne, using a company of debt collectors in Melbourne, not only gives you easy access to them but they will also be familiar with the city, the businesses, the law firms and the local courts. And the best part is that, unlike lawyers, they don’t take holidays.
But why should you use one of these companies, what can they provide you? They have many advantages over using over methods, such as engaging a lawyer. Firstly, using a company whose speciality is debt collecting is focussed on providing the best service as it’s their only interest. A lawyer chasing debts does not have this because they often they have far bigger fish to fry elsewhere.
Furthermore, using a reputable debt collection company can cover all possible issues that may arise when confronting a debtor. A missing debtor can often mean the end of any chance that you have of getting your money back but a debt collector has ways and means of tracing missing debtors.
Another advantage of using a specialist to chase debtors is that their fee structure is based on performance and success, whereas a lawyer will charge you regardless of whether they are successful or unsuccessful in recovering the debt. They also offer more flexibility in negotiating how much to charge for their services such as trying to negotiate a settlement and only charging you if the money is recovered. Taking a debtor to court is a costly business and should be a last resort. A debtor may be legally forced to pay you but if financial hardship is proven, the repayment may be spread over many years. A lawyer won’t want to wait that long for their bill to be paid, so in the short term, even with a favourable judgement, you can find yourself severely out of pocket.
In the vast majority of cases, for a Melbourne area business, using a debt collector in Melbourne will be more advantageous than engaging a local law firm.