Frequently Asked Questions
When should I engage a debt collector?
The answer to this depends on your terms of trade. As soon as the debt is due and payable you are entitled to take action. It is important to remember that the older a debt the harder it usually is to collect. For example debts that are over 180 days past their due date are significantly harder to collect than debts that are only say 90 days past their due date.
Aren’t debt collectors only interested in helping big companies – not small or medium businesses?
It is true that some debt collection companies only work with large companies. However, there are many (including Brodie Collection Services) that focus on small to medium businesses and their debt collection needs. No matter what the size of your business we can help you recover any debts that you have outstanding from your customers.
Where do you provide debt collection services?
Brodie Collection Services have offices in Melbourne and Brisbane. Our Melbourne office is in the inner Eastern suburb of Melbourne and provides debt collection services throughout Victoria. Our Brisbane office is located in the Brisbane CBD and provides debt collection services throughout Queensland.
Aren’t debt collection agencies expensive to hire?
Not if you hire a debt collection firm that has a ‘no collection, no charge’ policy. We have this policy at Brodie Collection Services – so we will only charge you a fee if we are successful in collecting the debt.
We are always upfront about our fees and do not require upfront retainers or exclusive contracts to be signed.
Won’t I lose my customer if I hire a debt collector to chase the debt outstanding?
It is important to engage a debt collector that is reputable and ethical and doesn’t use threatening ‘standover tactics’ when chasing a debt. You also need to make sure the debt collector you engage is aware of debtor rights. Debt Collection Agencies send an effective message that you will not tolerate the late payment of invoices. Remember, your customer owes you money and it is your right to collect it. Sometimes it is better to lose a customer than to have one that disrespects your business by always paying your invoices late and causing cashflow issues.
What happens if I need to escalate the matter to VCAT (Victoria) or QCAT (Queensland) or the Magistrates Court?
There can be additional costs when you decide to take the matter further. However, at Brodie Collection Services (where the debt is $3,500 or more) we will file a claim with VCAT / QCAT Tribunal, on your behalf, if we have been unsuccessful in the recovery of the debt. Additionally, we will upgrade the VCAT / QCAT order to the Magistrates Court (at our own cost) so that legal enforcement measures can be instigated if needed.
What information do you need to start the debt collection process?
To save you time and streamline the debt collection process, you can lodge your debt via our lodge your debt online form. This form asks all the questions we need about you and the debtor with the outstanding debt to get started. We will also need a copy of the invoice(s) outstanding that can be emailed to us
What payment options are there for debtors to make payment?
We allow debtors to pay by either electronic transfer or cheque. Within 7 days of the funds clearing in our trust account we will remit the funds to you (net of our fees).
What can I do to avoid bad debts in first place?
Brodie Collection Services, unlike some other debt collection agencies provide consulting services that will help you avoid manage your debtors better and improve cashflow. We can assist with implementing trade terms and debt collection processes and supply commercial credit template forms and trade account template forms tailored for your business. We also provide debtor risk assessment checks so you understand the risks of doing business with a client before you extend them credit.
Brodie Credit Control Solutions (“BCCS”), the consulting arm of Brodie Collection Services provide a broad range of services to help you get your debtors under control. This range of services include: 1. Consulting with you on trade terms, processes and debt collection methodologies The best way to keep your cashflow under control is at the beginning of the sales process (ie before you provide goods and services and extend credit to a customer). This means making sure you have clear trade terms that are enforceable. If worded correctly it will also mean that you will be able to recover your debt collection costs from the debtor. Carefully worded trade terms also mean that resolving disputes will be easier, making it … Continue Reading →