Online Debt Recovery
The coronavirus pandemic (also known as the COVID-19 crisis) is one of the most significant changes to our modern society since the rise of the internet. Not only are many forced to work from home but plenty of businesses are finding their cashflow cut off overnight. As a business that works with other firms, how do you ensure that your invoices are paid on time and how do you recover debts without exposing yourself to real danger?
What is online debt recovery?
During this unprecedented time, many industries have found ways of offering their services online, debt recovery services included. Utilising these services, an agency can remotely contact those who have outstanding invoice to begin repayment negotiations.
All that you need to provide to them is:
● Your Debtor’s business name
● Their address
● How much they owe you, and
● What business service the debt was for. Attaching the existing contract at this stage would be helpful.
From here, the agency will then electronically generate a letter of demand and then send it through by registered post. At this stage, they will likely charge you a small fee.
Advantages of an online debt recovery agency
We can’t ignore the most obvious and significant advantage of such services; the entire process is streamlined to be as fast and easy as possible, with business owners able to issue letters of demand and chase up debt without going into the office.
Plus, it is far cheaper than retaining a team of lawyers or engaging a practicing firm. Most of these fees have been wrapped up into a single credit card transaction (so you could even earn airline miles on a credit card while you are chasing a debt!).
Additionally, you only need to think of the time you save having to write a letter of demand and then lodge a claim at a court to see how much time online services save you.
Lastly, they generally have a weighty name attached to the communication that will improve the effectiveness of the letter of demand. After all, clients who have not paid on time are more likely to make payments when they realise that you are represented by a professional.
Disadvantages of an online debt recovery agency
Despite the fantastic advantages written above, there are one or two disadvantages that might be a deal-breaker for some.
Often the business owner will have little control over what is exactly written in the letter of demand and any other communication with clients. Some debt recovery firms have been known to use some language that may give the wrong impression to clients. In such cases, the company commissioning the recovery is almost guaranteed not to be rehired by that client again. So, when you’re selecting a firm to recover your debt, you’ll want to be sure that you select a service provider that will guarantee a professional service, regardless of whether you commission them online or not.
Additionally, many debt recovery providers will not provide advice as part of their online service, meaning it’s easy to join the back of a long queue of debtors waiting to be serviced. Again, it’s critical that you pick a provider that will deliver an efficient and affordable service; who will remain committed to positive representation and proactive pursuit regardless of how you engage them.
Just because the world is under lockdown does not mean that you will be unable to secure a debt owed to you.
When it comes to selecting an agency, there are a few things to look out for. Not only do you need to find a service that offers legal protection for yourself, but one that also has the willingness to take non-paying debtors to court. Also, you want a firm that ensures you maintain your reputation and treats your debtors with the best possible light allowing you to remain respectful in the industry.
Professional Recovery Services’ online debt recovery service is effective and professional, here to make sure you get results, regardless of how you commission your debt recovery. If you need advice or representation in the recovery of unpaid debt in the wake of COVID-19 you can contact us today by calling 1300 306 619.