The Service industry is an area that requires a different mindset to collections, unlike retail or wholesale debt where we are able to discuss any faulty parts or return of products purchased, the service industry requires a different set of skills when dealing with the debtors.
In the service industry, collectors require excellent negotiation skills, not only that collectors require the gift of the gab to be able to resell your service to the debtor and sort out any disputes over the service provided, therefore a clear understanding of the debt is important to ensure a good outcome.
When collecting service industry debts it is good to make sure you give as much information as possible, with this information your collector will be able to talk to your debtor in regards to the debt. Good communication between you and the collector is essential.
If you sell goods on credit then there is a possibility that you will need to have a contingency for debt collection that can be utilised very quickly, as with all debt it is very important to move fast when it come to being able to collect your money or easily pick up products that have been sold to a customer that has not paid you.
It is super important to work fast when you have a creditor that has not paid you because you need to pay your suppliers and having outstanding debts put a great deal of pressure on your business. It is not good to leave these debts to long no matter how good a client they are.
Of course having the right credit agreement is very important when it come to retrieving products from a debtor, however, it is not all lost if you have not got paperwork to support the retrieval of goods. Usually, it's a matter of letting the debtor know exactly what you intend doing if they do not pay you immediately.
Collecting wholesale and retail debt is a matter of pure persistence and requires a collector with the skills to keep at a debtor until they have the required outcome.
Believe it or not, even though education in Australia is cheap there are still many people who do not pay their fees. The burden this places on many of our schools and educational institutions is too great for it to be ignored. Coming to the decision to send parents or students to debt collection is often an emotional choice, however, we work with our clients to ensure a satisfactory outcome can be made.
We have created systems that comply with Government Institutions, Private Colleges, Public Schools, Registered Training Organisations just to name a few.
We have the ability to tailor our system to suit these types of institutions. Our collection activities often depend on the nature of client when it comes to this area, as it is often a very sensitive situation for parents when their children's education fees have not been paid.
We work with our client to ensure the best outcome for both them and the debtor is reached.
We have created debt collection systems that comply with Government Institutions, Private Colleges, Public Schools, Registered Training Organisations just to name a few. We also collect for TAFE.
As most levies fall due on three monthly basis, we have streamlined our unique service to upgrade the outstanding levy debt to include the new strata fees. This means clients don’t have to continue sending instructions to us. If the debt is still outstanding, we Work with the Strata Manager to ensure recurring levies are collected.
We charge a small fee then commission on what is successfully collected.
We always request your consent to go ahead with any extra work including tracing people who have moved and making field calls.If collecting a particular amount proves more of a challenge, we assess the debt give you our recommendations and if you wish we will collect the debt through the court system all you have to do is give us the instructions to proceed and we handle everything.
Not worrying about owners that are not financial. If you have an owner that is constantly in arrears, this situation will always remain the same until you change your plan of attack.Using a debt collection agency frees your time up as a strata manager to do what you do best "Manage Strata's"
Our Processes are Rigorous
At BCA Debt we use a dedicated and streamlined approach to successfully collect outstanding accounts for Owners Corporations. Our processes are rigorous and discrete. Our debt collectors have the industry knowledge, experience, and superb negotiation skills necessary to ensure they achieve the best and quickest possible outcome.
Ideally, before new levies fall due. This sends a clear message to the owners that they need to be prudent in their payments. As levies fall due the debts can be updated with the new fees including interest and added to the outstanding accounts. This keeps the balance clear to the owner at all times, ensuring that the arrears are paid in a timely manner.
All the fees can be added to the owner’s levies ensuring the cost is not a burden to the Owners Corporation. We can help you with the requirements to add interest, debt collection and solicitor’s fees to the owner’s statement. Owners can pay directly to us and we then forward you all the funds on a monthly basis.
Experience shows that owners respond to being told that they are responsible for the ongoing added costs by sorting their arrears out quickly.
Of course, these are carried out with your written consent after we provide a quote.
Improve the cash flow of your Owners Corporation - engage our services.
1. What charges are there?
BCA don’t charge additional fees for letters, emails, faxes or telephone calls. Many other collection agencies charge their clients for these simple services. BCA Debt charge a success fee on what is successfully collected.
2. Can I charge the debtor the collection costs?
Yes – According to the Strata Titles Act the Owners Corporation can charge 15% interest on outstanding levies.
3. How long will it take?
The length of time it takes to recover each debt varies and depends on the individual case.
- Age of the debt
- Accuracy of information
- Correct contact details
- Financial situation of the debtor
- Clients listening to our suggestions
Other factors that can influence the process are:
People's circumstances can change quickly, so it is important that as a strata manager or Owners Corporation representative you act quickly also. If there is a case where the owner has moved we may require a skip trace to be actioned. By using our specialised skip trace process and database systems, we can usually locate an owner quickly.
4. What is your success rate?
In every instance, without exception, we aim for a successful outcome by recovering the money rapidly. When it comes to levies we aim to have all debts paid off within three months, therefore a payment scheme may be arranged so the debtor can pay the amount in instalments. We are diligent with the collection of levies to ensure the owner does not fall behind in payments which can compound onto subsequent levies.
5. How do you collect the debts?
BCA employs highly skilled debt collectors who are natural negotiators. Once the debt is placed in our hands the collectors immediately get on the phone and start the process of getting the debt paid. They may send a letter or email to alert the owner if they were unable to talk to them immediately. The collectors are trained to work together with strata managers to sort out any misunderstandings between strata managers and owners.
6. What happens when a case goes to court?
Court action is not taken lightly and a decision is made on the merits of each individual case. When an owner becomes delinquent in their levies and payments, your collector will discuss recommend commencing Court action. All the evidence is gathered and sent to our solicitors to instigate the legal procedure. The collectors follow this process from beginning to end for their clients.
9. Will issuing a debt affect the debtor’s credit rating?
When your debtor pays the debt in full, their credit rating will not be affected. If the case goes to Court, and judgement is found for the plaintiff' (the creditor), this would be recorded and would affect the debtor’s credit rating.