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Is Debt Collection A Taxable Service?

Outstanding debts are a huge problem for business owners. It interrupts their entire cash flow process, which can easily lead to financial hindrance if the situation gets out of control. If a business is struggling to collect their debt independently, then it might be time for them to just bite the bullet and hire a debt collector or a debt collection agency. These agencies will then take over the debt collection process for the business and are more likely to get a positive result when dealing with the debtor. However, some businesses can be sceptical about this course of action because they do not want to pay the debt collection agency. This is often because they think they will need to pay upfront with no guarantee of collecting the debt, but this is only somewhat true. While no agency can ever guarantee a collection, not all of them will make you pay up front. Debt collection agencies such as eCollect – one of the top debt collection agencies in Australia – work on a commission-based model, meaning that you will only have to pay them if they collect your debt. This is just one of many perks of working with eCollect, they also have no upfront fees, no charge if the debt is not recovered, dedicated account managers, and real-time reports and updates. They collect debts of all sorts - no matter how big or small. With account managers who specialise in specific industries, the best approach is taken with each debt. However, once all is said and done on the businesses gets their debts repaid to them from eCollect, they all want to know if what they paid for their debt collection can now be claimed on their businesses tax? The cost of services provided by eCollect to a business are able to be claimed as an expense of the business when lodging a tax return. Of course, each business needs to obtain its own advice about lodgement of tax returns. Using a debt collection agency is the best choice you can make for your businesses cash flow. The possible disruption that an unpaid invoice can have on the invoice cycle and the eventual cash flow of a business needs to be dealt with quickly to avoid disruption. The best way to do this is by contacting eCollect as early as the missed payment is considered a debt, as this is how you will have the best chance of having your debt paid back to you. If you are a business that needs assistance in collecting their unpaid debts, then get in contact with eCollect today. eCollect is ISO certified and has a Commercial Agent Licence (VIC, NSW, QLD & SA), Australian Financial Complaints Authority (AFCA) Australian Credit Licence and an Australian Financial Complaints Authority (AFCA). If you are searching for a reliable debt collection agency, contact eCollect and get the job done.

What Is The Outlook For Debt Collection Post JobKeeper?

With emergency measures such as JobKeeper and Jobseeker approaching their termination date, a spike in debt has increased the interest of corporate investors and the need for secure and empathetic online debt collection. Since the first Coronavirus lockdown, a combination of the Federal Government’s wage subsidy schemes, rent, and bank deferrals and a flexible Australian Tax Office has made debt collection a tall order in 2020. read more...

Why Is There An Impending Surge In The Demand For Debt Recovery Services? 

The Australian economy, like many others, has suffered hugely throughout 2020 as a result of the coronavirus pandemic. The national debt grew in March, as many businesses were forced to temporarily close, in order to align with government restrictions, set to ease the spread of the virus. We were not the only country to see this happen, and we were also not the only country that saw an impact on the economy because of it. read more...

When Should I Hire A Debt Collector?

The Most Common Reasons Stopping You from Hiring a Debt Collection Agency
Collecting outstanding debt is one of the most common problems that business owners face, and it is not an easy task. Debts can disrupt your cash flow, drain your time and sometimes drain your patience. read more...

How to Approach Debt Collection If A Company Becomes Insolvent

Insolvency is the circumstance of being unable to pay the debts, by a company or person, on time. Insolvency becomes an issue when a creditor seeks to collect, and the debtor can’t pay what’s due. Just because a company has or is about to enter insolvency, it does not mean the company has lost everything and they cannot pay you back. read more...

Five Tips For Managing Debtors Effectively

There is no doubt that debt collection and creditor management is a sensitive topic. However, the reality is that unless your business relies entirely on being paid before goods or services are provided, there is a very high likelihood that at some stage you will have revenue owed in the form of debts that have to be recovered. read more...

Common Misconceptions Of Hiring Debt Collectors

The truth about debt collectors and how they can help your business. Outstanding invoices and debt can be a nuisance to any business. Sometimes no matter how hard you try to handle it yourself; the debt eventually turns into bad debt and you have no luck receiving it from the debtor. read more...