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.