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When To Collect And When To Forget A Debt

Debt collection is a topic not often discussed freely, however, if you own a business, it is likely you will come across unpaid debts at some point.

Dealing with the problem of late payment for goods and services is not uncommon, especially in today’s uncertain economic conditions. More often than not businesses will attempt to recover a late payment with the debtor directly, without having a third party involved.

Businesses often see this as a better option, because a third party could potentially scare away the debtor permanently. However, sometimes the debt is unretrievable for the business, or so it seems.

So, when is the right time to decide whether or not to pursue a debtor, or forget the debt and move on? In most Australian jurisdictions, the statute of limitations on debt in Australia is 6 years from the last acknowledgement of the debt. A debt is also permitted to be collected even if it has already been written off in a previous taxation period. So that sets the precedent for collection.

If the debtor is able to be found, the debtor has the capacity to pay (on a payment plan, or a lump sum) and the debt is true and correct, then you are on the road to successfully collecting a debt.

However, if the debtor is difficult to deal with, the breakdown of time spent taking action doesn’t warrant the amount of the debt, and as a result, you don’t want to throw away good money collecting bad debts, you might see this as the time to forget a debt.

If you are a business and you are asking yourself when you should collect and when you should forget, then our answer to you, is that you should never forget a debt. If you are finding it impossible to collect, then you should always pass your debt onto a reliable third-party debt collector such as eCollect.

Passing your debt onto a debt collection agency is not as daunting as it may seem. In fact, the earlier you pass on bad debt to eCollect, the higher the likelihood of collection is. eCollect prides themselves in their ability to collect debts that others have previously deemed ‘impossible’ to collect.

Since they have been helping clients recover their debts for more than 20 years, they use the latest technology during the collection process to make it faster and easier for everyone. Plus, you always want to deal with a reliable and trustworthy debt collection agency, who follow all regulations and rules regarding debt collection in Australia, and that’s why eCollect is the right debt collection agency for you.

eCollect is also ISO certified, and have a Commercial Agent License (VIC, NSW, QLD & SA), Australian Financial Complaints Authority (AFCA) Australian Credit Licence and an Australian Financial Complaints Authority (AFCA). So, if you are searching for a reliable debt collection agency to help you recover debts you thought were lost, then eCollect is your best option.

Never again forget a debt, when eCollect can help you recover. Make sure your bad debts are exactly where they should be, in your bank account.

Ready to get a best solution for your business?

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