Our service includes the full debt collection process including the court proceedings through to enforcement, our business has a proven track record within the debt collection industry and we propose the following to WALGA members.
Our collection process is rigorous, the process starts with phones calls and emails. This gives a true indication of the debtor's attitude towards the debt. The role of BCA Debt will be to enforce the payment from debtors and in supporting those people struggling to keep up with payments by entering payment arrangements and keeping a line of communication with them.
Our experience tells us the majority of people want to do the right thing and get their debts paid, by supporting those who struggle with the day to day management of bill paying we can help reduce debt levels. Increasing the line of communication with debtors can greatly reduce the number of customers having court processes served upon them.
We have collaborated with Fort Knox Legal to complete the whole debt collection process. Fort knox Legal has a vast amount of experience in enforcement and their aim is to seek judgement against the debtor and then proceed to enforce payment. If a Debtor is refusing to pay or becoming difficult to recover funds from and the process of collection has been exhausted then the only means left is court action. Once court action is commenced, it will impact on the person being sued’s credit rating as the information becomes public, and will appear on the records of Equifax where most financial institutions refer to when seeking a credit reference for loan applications.
Is to get the money paid as quickly as possible, via the least resources expended. The traditional debt collection process can be a fantastic way to get the money paid quickly. We understand that the nature of some of the customers are low income but that doesn’t mean they do not want to pay their debts, we deal with low-income earners all the time and from this experience, we know they want to be given a chance to pay down their debts and have someone they can talk too. Communication is the key to success.
Your collector is here to help you, any questions that are asked in the process of debt collection are for your collector to gain knowledge on the debt, we have compiled a series of articles based on information required by your collector to perform their role and have a smooth outcome.
Are you looking for debt collection services in and around the Mandurah area? BCA Debt has assisted thousands of large and small businesses around Australia to recoup outstanding money and provide services in the Mandurah and surrounding areas.
BCA Debt implements a proven 6 Step Debt Collection process to professionally and efficiently recover monies owed to your company with personal service and 24-hour secure access to the status of your debt.
BCA Debt provide debt collection expertise and services throughout Western Australia including the local areas of:
You do not want to ruin your association or jeopardise any further business dealings with your client, but to wait months for payment is unfair and unjust. Chasing outstanding funds from debtors is stressful and frustrating, not to mention the changes to legislation, legal guidelines, and updates to the Privacy Act that business owners need to keep on top of. If you are based in, or around Mandurah and you are constantly taking time out of running your business to pursue those who owe you money for work already done, BCA Debt can help. They understand the feeling of waiting on funds from clients, the awkward and frustrating nature of dealing with this situation whilst trying to maintain a business relationship. BCA Debt can lift the burden on you by implementing professional strategies to rectify the problem and move forward.
Specialising in debt retrieval for many industries including:
BCA Debt boasts over 13 years of effectively assisting businesses in retrieving of owed debt and providing up-to-date and thorough advice to their clients.
Where Can I Find a Debt Collector in the Mandurah Area?
When you are looking for a debt collector in the Mandurah area, from Rockingham to Pinjarra, BCA Debt is proud to be of service. Call the team on 1300 136 917 to speak with a debt collection professional today.
CHOOSE YOUR INDUSTRY
Debt Collection over the past few years has changed dramatically. Keeping up with changes to the legislation, plus the introduction of the debt collectors guidelines and the recent updating of the Privacy Act means we all have to adapt and keep pace with these. This doesn't just affect debt collection agency's, businesses are expected to know and understand these law's and abide by the same guidelines when collecting their own debts.
Changes in technology have also been massive and I don't wish to show my age but the introduction to internet banking has made a remarkable difference to the way people are able to pay. However, they still have to make the effort to do this and sometimes this is where the frustration of getting debts paid comes from.
The constant following up on customers to pay their bills can get any business person down. Honestly, we often have the same problem, all businesses have to chase clients up to get paid at some time and we are no different. We completely understand how it feels to be waiting on money.
Having outstanding debts stifles cash flow and upsets the balance of your business and I know first hand how that feels.
One thing I have learned is that the quicker you get onto your debtors the better chance you have of collecting the full amount of the debt. Leaving money outstanding for too long is a big mistake, often business owners are afraid of upsetting a customer by asking them to pay up. This can lead to a poor relationship between you and resentment can set in, waiting for money that is owed months after a job has been done is unfair and unjust.
Are you having disputes with customers over money they owe you or late payers who are stifling your cash flow?
Often when work is completed sending your invoice is the last thing on your mind, but actually, it should be on your mind all through the job, if you are billing for hours keeping good records as you go can help make the invoicing process a lot easier.
Make sure your billing is detailed, set aside time at the end of each session for this. I can’t tell you how many debts we have that are disputed overtime issues.
If it’s possible, get your customer to sign off on your times especially if the job will go over a few days or weeks. Customers don’t like surprises on their invoices and my suggestion is that you keep them updated daily. If you can get your customers to sign a daily time sheet or if they are not present send an SMS letting them know of your times, this way you both have a record.
Most accounting packages have time tracking, but I am sure there are apps that you could use.
Second but of equal importance is to keep detailed records of inventory, this is another area the causes disputes resulting in debts not being paid, so many arguments happen over the costs and amount of materials used on a job. Please record what is useful and again get your customers to acknowledge these as you move through a job. Keep good records so at the end of the job you are not guessing what was used.
When you have completed the job get your customer to sign off that the job has been completed to their satisfaction. Use a dedicated job completion form that includes the clauses from your Terms and Conditions stating what the requirements are for a remedy if they are not happy with any element of the job. This form should also have a time frame in which they have to raise concerns and a process to which to raise these.
This is so important because many jobs that are not remedied quickly get left to fester and may never be paid and it may have been over one small element of the job.
I can’t stress how important having a disputes resolution process is for your business.
You can make it your administration person or bookkeeper responsibility to ensure jobs are signed off on and completed to your customer’s satisfaction.
So now it is time to send your invoice, as part of the finalisation of a job gather all the information and send it to your bookkeeper, I also recommend calling them and to discuss all the elements in the invoice. This can save a lot of time in the long run if there is confusion over element of the job being invoiced. You will also get clarity that your bookkeeper knows exactly what to put in the invoice.
Then send it off by email through your account package
Check that your Terms and Conditions have a dispute resolution process that suits your business.
Getting paid for the job you have done is your customer appreciating the work you have done, getting paid quickly by your customer is the ultimate compliment.
So how do you make sure you get paid quickly?
Therefore, you need to have a system for this that is easy to use and a reliable person to use the system.
Who in your business is responsible for making up the invoices? This is one area many businesses fall down, they take too long to send out the invoice, usually because it left to the wrong person to do it.
Make sure you have an automated way to create invoices and set aside time each day to do it, or have someone do this for you, a freelance bookkeeper may be a great choice for this role or if you are doing a lot of work you could employ a bookkeeper. Have them send the invoice immediately and then follow up to ensure the customer received it?
Most accounting software has a numbering system, use this wisely and code your customers, also put this on the invoice. Little things like these make it known to your customers that you are organised and know what you are doing.
Make sure your invoice is well itemised, put everything on it, you can also attach a copy of the quote that was provided (you did provide a quoted didn’t you?) Make reference to the quote on your invoice.
Customers don’t like surprises and your invoice is not the place for them, don’t use it as a way to add extra charges that have not been agreed upon.
Honestly, this is one massive problem for us as debt collectors, clients doing extra work that has not been agreed to, it is one of the biggest causes of disputed debts resulting in non-payment. Many times we have seen a customer get their back up and refuse to pay the whole invoice because one element was added that wasn’t agreed to before the job was started.
On your invoice, have easy payment options and give lots of choices. How your customers pay you may depend on the type of customer they are, is it business to business or business to consumer?
Consumers are more likely to click and pay if the option is on the invoice when sent electronically, where a business may be more likely have a formal method, like online banking. But don’t guess give lots of option no matter who your customers are.
Make sure invoicing is some one’s job if you are the business owner preferably not yours. Don’t put any surprises on your invoices. Check for errors before sending and give plenty of payment options.
Who is paying the invoice?
Often an invoice is disputed because it has been sent to the wrong person or written out to the wrong entity.
Make sure the entity you are dealing with is an enforceable entity, we often see invoices made out to entities that cannot be sued.
As you know, invoicing is one of the most important elements for getting paid for the work you have done, making it important that you are issuing them to an enforceable entity.
A common mistake many businesses make is issuing an invoice to a business name.
Now, I can hear you saying 'what’s wrong with that?'.
Well a business name is not a legal entity, ASIC Manages business names and when you search on their website it applies ABN numbers to them, but the ABN belongs to the legal entity that owns the business name. This may be a PTY LTD Company or an individual, it may even be an association, no matter what it will be owned by a legal entity.
You need to think of the business name as an alias or a nickname.
On your contracts and invoices make sure you are addressing the full legal entity, plus the names of the directors, trustees, and people who the entity is associated.
Ok, now I have mentioned trustees, trusts are another problem and are set up for various reasons. The important thing to realise here is that a trust is also not a legal entity and again like a business name they cannot be sued. It is the trustees that are the legal entity and their names are what must be on your contracts and invoices.
This is another common problem for businesses, in particular for accountants as they may be preparing taxation, financial planning and various services for trust, super funds or businesses and invoicing to the same, however again none of these are enforceable entities and cannot be sued, ensure your contracts and invoices are contracted to the correct entity. When you are working for these types of entities you still must invoice the original owner of the entities.
I know this is a big problem when it comes to enforcing payment, so ensure you are billing, invoicing and signing up a legal entity that is enforceable.
The simple way to avoid this is to check on ASICs website that the name on your contract is a legal entity before going ahead with any work and then invoice that entity.
3 common mistake businesses make with invoicing:
We recently had a client come to us who was a graphic designer and printing firm, they had a client sign up for a job, they did a job for them under the name on the contract and that was all good.
The same person came back and asked for more work to be done, for two additional jobs but they were for different companies and they asked to have the invoices made out to the separate companies. The graphic design and printing company never got them to complete new contracts for the two additional companies. When it came time to pay there was an argument over who was being billed.
They went to court and because there was no contract he only got a portion of his money back and that was from the entity on his contract. It just goes to show that when you get a job, double check who is paying the bill.