Secure your funds to get debts paid faster and do this the earliest time possible. Time is of the essence when it comes to debt collection. The longer you allow invoices to go unpaid, the lower your chances are of successful recovery. But if you are quick to take action and you partner with the right people, then you can save yourself from bad debts. This case study shows how taking immediate action can help businesses secure their funds and get their debts paid faster.
The Case
Recently, a client approached Slater Byrne to help them recover an outstanding invoice. The invoice is overdue for over six months. The invoice was for repairs our client had done on the debtor’s bus. Our client was asked to complete the job urgently and they did so in good faith, agreeing to forward an invoice for payment after the repairs were finished.
What proceeded then was six months of our client repeatedly requesting payment, only to be met with excuses and broken promises.
The Client Calls in the Experts
After over six months of receiving no payment, our client had had enough. They decided to engage us to take the matter over and instructed us to pursue the debtor for the funds.
Slater Byrne’s Debt Collection Process Flow:
Step 1: Contact Debtor. The client sends a debt through. In response, Slater Byrne Recoveries immediately sends a first letter, email, or text message to the debtor. Within 7 days, or, often, earlier, debtors make payment or contact the client. If Slater Byrne Recoveries receives the payment or response, we will advise clients without delay.
Step 2: 7 Days No Response. If there is no response from the debtor after 7 days, Slater Byrne Recoveries sends a reminder letter, email, or text message. Slater Byrne Recoveries will also make a phone call to the debtor. At this stage, Slater Byrne Recoveries will conduct research to learn more about the debtor.
Step 3: Legal Action. If there is still no response after 7 days, Slater Byrne Recoveries sends a second reminder letter, email, or text message. Slater Byrne Recoveries will also make a second phone call to the debtor. By this time, Slater Byrne Recoveries will send a notice of impending legal action with a warning that the debt collection agency can lodge a credit default.
Step 4: No Resolution Found. There is hope for a resolution. Your Slater Byrne Recoveries account manager will advise you of the legal options that are available to you at this point. The client may incur further costs if it pursues his available legal options to recover the debt. If the client gives the go-signal, Slater Byrne Recoveries will proceed with the legal options.
Step 5: 1 Month Minimum. Debt collection can take a minimum of one month. The entire process can go beyond this when working with unwilling debtors. Slater Byrne Recoveries may make referrals to debtor relief or debtor finance companies to help get the debt paid quicker in cases where the client is in financial hardship.
The Successful Outcome
Less than 24 hours after we were engaged, Slater Byrne was able to persuade the client to send payment of the full amount directly to your client’s bank account. The lesson to be learned here is to take action immediately and secure your funds to get debts paid faster. Six months could be a long time for your company to be unpaid. Your business could have used the cash you expected to get to get your operations going.
If you are looking to clear your debts quickly and need help with some of your delinquent clients, do not hesitate to get in touch with us.
Call us today on 1300 794 290 for a no obligation consultation with one of our experienced managers.
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.