Thanks to our decades of experience in the credit and insolvency industry, Slater Byrne Recoveries has been exposed to the many misconceptions people have over debt collectors. We’ve had countless clients who were initially sceptical about hiring us because of fear that doing so might negatively affect their relationships with customers.
The stigma attached to this industry is largely due to the widespread misinformation about the actual process of debt recovery. Many people still think that it’s all about threats and intimidation. But this really couldn’t be farther from the truth.
Dispelling Debt Collection Myths
It’s high time that we debunk the most common myths about debt collectors and discover the truth about how they really help your business.
- Debt collectors will make you lose customersPerhaps the most prevalent myth about debt collectors is that they are out to hassle your clients until they pay. As a result of this, your clients will be turned off and will eventually leave you. But this is simply not true.Good debt collectors not only to help you recover debt, but also to assist in maintaining good customer relationships. Our team at SBR always strives to make whole debt collection process as professional and cordial as possible.Instead of merely demanding payments, we try to find out what is causing the delay and work debtors to come up with a more efficient payment plan. This way, we can come up with a win-win scenario for all parties involved.
- Debt collectors will ruin your brandThis largely depends on the collector you hire. It’s important that you find a debt collections firm that understands your brand and is fully committed to protecting your interests while also maximising your cash flow.Here at Slater Byrne, we do more than just collect debts for our clients. We also offer other services such as business health checks so clients can get a better sense of their company’s current state. From this, we help them develop practical action plans so they can improve their operations and meet their goals.
- Debt collectors are only for extreme casesIn debt collection, prompt action is key. The sooner you refer a debt to us, the faster and easier it will be for us to collect. Acting early significantly reduces your risk and increases the likelihood of payment.Also, if you take action right away, even a simple letter can move your invoice from the bottom of the pile to the top. Following this mindset will allow any business to improve their cash flow and enable them to operate at a faster rate.
- Debt collection is only for large companiesEvery day, many small businesses contact debt collectors to help them with overdue invoices that range from a few hundred dollars to tens of thousands. These businesses understand that ignoring overdue debts could lead to problems that could be detrimental to them in the future.More importantly, they recognize that their expertise lies with their products and services, not with collecting money. So, they delegate this task to debt recovery firms like Slater Byrne. By doing this, they know their chances of getting paid will increase significantly.
- Lawyers will give you better resultsAlthough there is a place for legal action in the debt collection process, it is always considered a last resort. Effective debt collection is about getting outstanding invoices paid at the lowest cost possible. The litigation process, however, can take a lot of time and money, which are resources that not many small businesses can spare. Plus, “going legal” is likely to damage customer relationships.So, the best option is to obtain the services of a debt recovery firm like Slater Byrne. We understand the laws governing debt collection and have the right experience and expertise to help collect your debts faster.
- Debt collectors are extremely expensiveEach debt collection firm follows its own payment structure. Here at Slater Byrne, we operate on a “no collection, no commission” basis. This means we only get paid when we successfully recover your money. We don’t require any joining or administration fees, nor do we charge for any letters that we send out.Also, if your company has the correct Terms & Conditions, the costs for debt recovery can be added on top of the outstanding debt. This means that when a debt gets collected in full, you will not have to pay out of your own pocket for hiring us!
Let Us Help You Now!
Now that we’ve cleared up these misconceptions and myths, you can be more confident and comfortable with the idea of hiring debt collectors. Don’t wait until it’s too late! Take action now and let us help you collect on those outstanding bills.
Contact our office at 1300 794 290 to speak to one of our debt recovery specialists. We will work with you to come up with the best collection strategy for your business.
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently working in a Marketing/Head of Sales capacity at Slater Byrne Recoveries.