How SBR Uses Debt Negotiation Skills Without Need for Legal Action

Slater Byrne Recoveries received a lodgment of a debt totalling AU$212,728.92 for business management solutions services. The Client informed us that they contacted the company for payment before but hit a wall when the debtor refused to pay. As the unpaid amount was already two years overdue, the Client decided to use SBR’s debt collectors to get the debtor to, hopefully, agree to a lump sum payment.

There was a delay after our first contact with the debtor as they kept on telling us that the employee assigned to handle their accounts payables was on leave. Because of this, we informed the debtor that should they not pay off their debt, we will escalate the process which will result in a default that may adversely affect their credit score.

Before pursuing the credit default, our SOP is to confirm with the Client the debtor’s identity by asking for their ABN as we have found two possible entities having the same trading names. Read further to know how Slater Byrne used our debt negotiation skills to get the debtor to pay the Client without need for legal action.

Debtor proposes to pay US$92.00

After we successfully reached the debtor’s representatives, they informed us that they were disputing the amount and that the correct amount owed, once our Client rectifies the user misclassifications, is US$92.00.

Turned out, the debtor brought up the same dispute from 2020 and the same offer of settlement, which the Client already rejected.

Debt Negotiation Skills SBR Account Manager

“The debt has been going on in circles.”

Sandra Chary, Slater Byrne Recoveries accounts manager assigned to the case.

Sandra suggested we seek formal advice of the Client’s prospects from the solicitors so they can weigh the pros and cons of the debt and suggest on how we go about resolving the debt. The solicitors may suggest legal action or just a simple demand formally addressing the dispute.

SBR negotiates for higher settlement

Following our notice that the Client is looking to escalate the manner to legal, the debtor’s new solicitor reached out to our accounts manager for an amicable settlement. Before speaking with the debtor’s representative, our account manager talked with the Client and asked them what amount they are comfortable with in case a settlement is agreed upon. The Client said that the settlement amount should be in the vicinity of over US$200,000, which included interest as well as debt collection agency fees.

The talk with the debtor’s solicitor revealed that both parties had issues with billing and that this needs to be addressed. The debtor’s solicitor advised that if the Client is willing to discount some of the charges the debtor should accept and settle and move forward. Going back to the Client, our account manager got their go signal to settle for US$140k.

After receiving the Client’s offer, the debtor made a counteroffer of US$100k, arguing that both parties’ actions contributed to the billing confusion and outcome.

“We are keen to bridge the gap between us and your client and reach an amicable resolution as soon as possible,” the debtor’s solicitor told our account manager.

The Client agreed with the US$100k debt settlement amount and, after confirmation, the debtor transferred the money at once.

Debt negotiation saves you money, time

Debt negotiation is part and parcel of the services that Slater Byrne Recoveries give to our clients, especially in cases where the debtor is unresponsive, tries to dispute the unpaid amount, and settles for a shockingly low final payment.

Because of our debt collector’s negotiation skills, the Client saved a large amount had they pursued legal action and a lot of time going around in circles trying to chase the debtor for an unpaid invoice.

You may also be interested in our other debt collection case studies:

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