5 Great Reasons For Small Businesses To Use Debt Collection Services

Small businesses tend to struggle the most when debtors won’t pay up. The reason for this is quite simple. As a small company, you rely much more on that single debtor than a large corporation, for example. Small businesses also often lack the resources, time, and skill to recover bad debt. 

Since you cannot simply let debtors slide, the only and best alternative is to get help from debt collection services. These professionals offer numerous advantages to small companies. Let’s take a look at some of the best reasons to hand your debt recovery projects over to a debt collection service.

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01. Professionals Take The Time To Effectively Recover Debt

Recovering overdue debt is a very time-consuming process. You will need to reach out to debtors a number of times on different platforms or through different methods while attempting to get some kind of response. It can take a lot of effort to correctly compose letters and messages and you will need to regularly follow up.  You might not have the time for all of these steps, but debt collection companies do.

02. They Have All The Necessary Resources

It is illegal to coerce, threaten, or force debtors to pay up. While trying to recover the funds that are rightfully yours, you will need to stay within legal limitations. It is difficult to find out what the limitations are and you also need to work with legal professionals when taking steps against the debtor.

Small businesses usually don’t have all the needed resources to effectively deal with debtors who refuse to pay up. Debt collectors, on the other hand, specialise in this field and they have an abundance of resources and strategies that can increase success.

03. Easier to Write Off Bad-Debt

Writing off bad debt can help your business move on without clinging to false hope. There is only one issue. If you want to write off bad debt at the ATO, then you will need proof that you did everything in your power to get your debtors to pay up. Working with debt collection services makes this process very simple because you will have a full track record of everything the debt collection company did while trying to recover the funds. Your chances of getting an easy write-off will increase substantially.

04. No Out-of-Pocket Costs

Debt collectors are usually very affordable. Some are even completely free to use since they only charge a commission rate on the due debt amount. If the debtor never pays up, your company won’t owe the debt collectors a thing. If the debtors finally do pay up, your business still won’t have any out-of-pocket rates since the payment will be subtracted from funds that would have been lost.

05. Maintain a Professional Relationship With Debtors

Debtors who don’t pay up are usually in a tight financial position and are very likely to start paying their due when things start to look up. One day these debtors could be valuable clients. The last thing you want is to sour relationships that could one day benefit your small company. With debt collection services, all recovery processes will be strictly professional and you will maintain a positive relationship. 

Skilled Debt Collection Services To Help Your Company Cope

Instead of continuing the struggle with debtors, you should give Vic Collect a call. Our debt collection company will take full charge of the collection processes for you and will contact all debtors on your behalf. With Vic Collect, your chances of getting paid can be higher and your company can stay focused on more important projects like your paying customers.

By choosing our commercial debt collection Melbourne, small business debt collection in Melbourne and debt collection in Melbourne you can expect a results-driven and ethical approach to debt recovery that prioritises your interests and ensures the swift resolution of outstanding debts.

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The commission we charge on debts collected is as per the below Commission Rate Table. The percentage charged is set on the debt amount you hand to us to collect.

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