This is why we have debt collection guidelines
Debt collection guidelines A few landmark cases in Australian courts have highlighted the importance of following debt collection guidelines when recovering overdue cash from debtors. Debt collectors behaving badly is becoming a thing of the past, thanks to high profile cases like these which serve as good reminders of what not to do. In Australia, the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investment Commission (ASIC) enforce Commonwealth consumer protection laws, including laws pertaining to debt collection. Their document, Debt collection guidelines for collectors and creditors outlines the responsibilities and expectations of creditors and debt collectors. […]
The anatomy of a debt collection letter
Debt collection letter For the past three months, Amy has been chasing payment for floral arrangements she supplied to an events management company. She’s emailed her customer a number of payment reminders and received a brief ‘promise to pay’ reply. Still, the money hasn’t arrived. Her phone calls ring out and as a busy small business owner, she can’t afford to lose any more hours chasing this account. She’s beyond frustrated and now very worried that she’ll never be able to recover the $2630 she’s owed. “Send a debt collection letter,” suggests a friend. A debt collection letter, also known […]
Debt collection in Australia
Debt Collection Australia Cash flow is a top concern for the 3.1 million small businesses operating in Australia. And with small businesses owed an estimated $26 billion in unpaid invoices (Galaxy Research, 2015), debt collection in Australia becomes a necessary process for any business owner navigating the late payments trend. Debt collection industry overview In Australia, a wide range of businesses undertake debt collection activities: from original creditors trying to recover cash on unpaid invoices through their in-house credit management functions, to third party debt collectors who collect debts on behalf of the original creditor, or buy debts and collect […]
10 FAQs about debt collection services in Australia
Debt Collection Services Australia Debt collection services in Australia can seem complex, with a number of state and federal legislative and regulatory instruments governing the practice and industry. As your small business grows and accumulates more trade credit customers, you’re more likely to be using debt collection services to deal with past due invoices and bad debts. As you start to include debt collection services in how you do business, it’s important to understand the new landscape you find yourself operating in. 1. Are all debt collection services in Australia the same? No. Your small business has a number of […]
Debt collection services: Options for small businesses
Debt Collection Services You’ve got your business plan, your marketing plan and your social media strategy. You’re ringing in the sales and sending out the invoices. In your business’ early days, debt collection services probably aren’t on your radar. But with one in four Australian businesses that issue trade credit experiencing an average payment delay of between 31 and 60 days, and one in two owed more than $20,000 on overdue invoices, debtor management needs to be an integral part of business management, advises the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). So what debt collection services are small […]
10 red flags your business needs a debt collection agency
10 red flags your business needs a debt collection agency When you’ve run out of of patience and time waiting to be paid, outsourcing collections to a debt collection agency is one option to consider. A debt collection agency acts as an agent for your business in the collection of overdue debts, and you typically pay a fee or percentage of the total amount collected. But when’s the right time to call in a debt collection agency? Look for these ten red flags as signs that you need to work with a debt collection agency in order to straighten up […]
Introducing automation? 5 employee fears you can overcome
When business owners start talking with employees about replacing manual tasks with automation, what they’re really saying is how can we simplify our business? Employees don’t always hear that though, and can jump to conclusions about the impact of automation on their job security, customers and workplace. While a business owner may be well-versed in the benefits of automation, it’s just as important that staff are consulted and prepared. Here are a few common concerns your employees may have, and how you can address them: Fear of becoming redundant Fear of human redundancy in the face of technology has been […]
5 tax time tips to improve your cash flow and business value
With less than a month until the end of the financial year (EOFY), business owners tend to focus on making their business more tax-effective. While this is relevant, tax time shouldn’t drive your business decisions—increasing value for customers, owners, investors, and employees should drive your business decisions. As the end of another financial year draws near, ezyCollect offers these tax time tips to help you improve your cash flow and business value. 1. Meet with your accountant / tax advisor A 30-minute meeting with a trusted advisor who understands your business and structure is a smart way to head into […]
16 damaging mistakes to avoid when sending invoice reminders
*Plus* free download of 8 invoice reminder templates for email and sms Against a backdrop of a growing trend in overdue invoices (Dun and Bradstreet, Australian late payments analysis Q1 2017), invoice reminders are an incredibly important tool for business owners to simply collect the cash that is owed to them. Here we highlight the most common mistakes that accountants, bookkeepers and business owners make when sending invoice reminders—and how you can avoid them. Mistake #1 Not sending invoice reminders at all Business owners sometimes hesitate to send invoice reminders believing that their clients will get annoyed. But that’s a […]
Rural Directions: Harvesting past due invoices
For the past 20 years, Rural Directions has been helping to grow a strong agricultural industry in South Australia—from providing farmers with advice on how to grow and sell their crops, and manage their small family-run businesses, to advising government organizations and large corporates on investment and capacity building in the sector. “We have our own farm as well…so we understand the challenges of farming,” says Sarah Heinjus, Business Support Team Leader. The debtor management challenge Past due invoices were a challenge to manage. The company bills around 2000 farmers for consultancy services and subscriptions to their independent agribusiness resources. […]
