Treatment - Debt Collection
There is a key decision you need to make before you ask Cash Flow Doctors to cure slow payers disease for you. Firstly do you just want to educate a client that due dates are important meaning that you want to continue doing business with them, or is it time that they got the message that you just want your money back and are not concerned about their ongoing business? This is how you make the decision about which of Cash Flow Doctors collection options you use, either soft or hard.
SOFT DEBT COLLECTION
Soft debt collection is where the initial approach taken by Cash Flow Doctors is to negotiate a settlement with your client. This course of treatment is recommended where a debt is 3 months or less overdue. Your client receives the message that paying by due date is important which leads to them paying on time in future.
You should also be reviewing any rights you have to make registrations on the Personal Property Security Register to ensure that you retain an interest in any goods you have sold to your client.
If your client does not respond to this course of treatment then Cash Flow Doctors will immediately move your client onto the hard collection process. So that you remain fully informed of our progress you will be advised before this happens.
HARD DEBT COLLECTION
Hard debt collection is where the initial approach taken by Cash Flow Doctors if far more confrontational. This course of treatment is recommended when either the soft course has not brought the desired result, or where a debt is over 3 months overdue. Action is demanded urgently as it is likely that other creditors will also be demanding payment. An old analogy springs to mind here “the squeakiest wheel gets the most oil”. Unfortunately your clients may not wish to deal with you again if the hard collection course of treatment is used.
If this course of treatment is utilised you should also be checking that you have registered any interest in goods on the Personal Property Security Register and give consideration to enforcing any caveat or mortgage clauses you may have in your terms of trade.
If your client does not respond to this course of treatment then Cash Flow Doctors will list them as defaulters on Veda Advantages Credit Reporting database and make a recommendation to you about taking legal action against your client.
BENEFITS OF USING CASH FLOW DOCTORS
• You choose the collection treatment used – soft or hard
• You are regularly advised of treatment progress
• The treatment takes effect within 28 days so you know the results very quickly
• By using the soft treatment you are able to retain client loyalty. We will be the bad guys – not you
• Costs (if any) are fixed at beginning of the treatment. If you have vaccinated correctly with terms of trade these costs can be passed on to your debtor
• If the treatment is unsuccessful there is no cost to you
• If the treatment is unsuccessful your debtors credit rating is destroyed for 5 years at no cost to you
To start your cure submit a debt lodgement form to us by fax. We will confirm your slow payers details to you before we commence action. Please note that any collections are subject to our usual commissions and terms and condition.
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