table_example

Cost Effective Service

Andrew Baty Debt Collection Services Leave a Comment

Net Back Overview “The problem with most bad accounts is that they are passed to a Collection Agency only after five or six months of collection activity by the client company. Statistically, after 30 days 5% of bills are unrecoverable, after 60 days it’s 15%, after 90 days it’s 25%, and after 12 months 75% of those bills are completely lost. “What we do is ask clients to pass accounts to us as soon as their early collection activities fail to produce results. That way we get accounts early, in the 5-25% loss range, and we have a really good chance of recovery The other advantage to this early pass-over is public relations; we’re the ones who pursue ‘the tardy’, not the client. That way the client keeps the customer, and we pursue recovery as directed by the client, diplomatically or intensively.” Netback Example

Andrew BatyCost Effective Service
debtcollection

How Does Debt Collection Work?

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Paramount Collections use the concept of performance based debt recovery and have maintained a policy of not charging our clients any membership fees or other similar charges for over thirty years. Our “Success Only” service means that our commission is only charged on the amount we actually recover for you. Our system for debt collection has been developed and refined over many years. It utilises a series of letters and phone calls to firstly engage your debtor and have the debt acknowledged. Then it focuses on having your debt prioritised and paid before other accounts the debtor may have owing. Finally, it aims to achieve fast repayment and monitoring any agreement to ensure the debtor follows through. In the instance a debtor proves elusive we are able to perform a trace using their last known details. If further investigation is required, we are able to refer the file to our in-house investigations department for more extensive inquiry. How Our System Works Our system and approach allows slow payers to settle their debts quickly, and without much fuss or embarrassment. It also places enough focus and pressure on seasoned debtors to achieve positive outcomes on complex and troublesome accounts. You’re free to focus on your core business functions whilst we take care of recovering your overdue accounts. Reduces your operating costs through employing and training less accounts receivable staff. Reduces your risk of breaching compliance and regulatory obligations and legislation including ACCC & ASIC debt collection directives, the National Privacy Principles and Privacy Act.

Andrew BatyHow Does Debt Collection Work?
interest

Adding Interest Costs

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We are frequently asked if we are able to add interest and Collection Fees to a debt. The following article should answer your questions. Is Interest Normally Recoverable? Interest is only recoverable at law in the following circumstances: How Do You Incorporate An Interest Provision? There is only one fool-proof way to incorporate an interest provision. You must include a specific provision in your trading terms and it must be acknowledged by your Customer. The wording of the provision must be clear and unambiguous. e.g: Interest shall run on the amount of monies outstanding from the date due for payment until the date payment is made at the rate prescribed by the Penalty Interest Rates Act (Vic) plus two per centum. When providing goods or services, it is always preferable to specify your terms and conditions to avoid any dispute later. Thus, it is essential that your Customer or Patient understands and acknowledges that the terms and conditions form part of the contract. How To Attempt To Recover Collection Costs The most effective way to recover collection costs from your Customer is to incorporate a specific provision in your trading terms which clearly states that in the event of default, the Customer will be liable for the collection costs incurred. e.g. In the event of the Customer being in default of his obligation to pay and the overdue account is then referred to a debt collection agency, and/or law firm for collection the Customer shall be liable for the recovery costs incurred and if the agency charges commission on a contingency basis the Customer shall be liable to pay as a liquidated debt, the commission payable by the Supplier to the agency, fixed at the rate charged by the agency from time to time as if the agency has achieved one hundred per cent recovery and the following formula shall apply. Commission = Original Debt 100 – Commission % charged by the Agency (including GST) In the event where the agency is Paramount Collections the applicable commission rate for the amount unpaid is as detailed in our Commission Scale Brochure. Can I Add Terms After The Contract Has Been Made? At law, it is not possible for one party to a contract to vary the contract without the consent of the other party. In order that your claim for adding interest and/or costs will withstand legal challenge, it must be understood by your Customer as forming a condition of the contract. Unless this is done, then incorporating the conditions only in the invoice will be legally ineffective – if challenged. We recommend as a minimum that your trading terms be detailed on your website and that all quotes, orders and invoices have the following words incorporated: “Our trading terms are located on our website and the trading terms shall form part of the contract which governs the relationship between you and us”. Our Role Unless we are satisfied that your trading terms are in accordance with the above, then we …

Andrew BatyAdding Interest Costs