The responsibility of chasing debtors is the most frustrating one for any lender or financial institution. Things are annoying as debtors always have creative and innovative excuses or reasons for not clearing the outstanding debt or the pending dues and bills. Every debt collection Australia firm has professionals who know what excuses debtors can make and how to deal with them. Seeking debt collection services in the early stages is beneficial, as it has several advantages. We have come up with a guide where we discuss the top non-payment excuses and how debt collection professionals handle them and make them clear their dues.

Here are the details of the most common excuses that debt collection Australia professionals hear too often.

WHEN WE GET PAID YOU WILL GET PAID?

Some debtors think that they have the right to keep the payment pending on this basis. This is not acceptable at all as far as debt collection laws in Australia are concerned. This reason can be accepted if you have already accredited a credit arrangement from the 'get-go'. This could be assumed as a warning sign of a customer's financial difficulty or severe cash flow issue. Staying firm and persistent is the key here, and financial institutions and lenders often fail to do so. In this situation, professionals from the debt recovery Australia company can be beneficial, as they have the authority, expertise and tenacity to deliver positive results. They can communicate with the debtor to get the details of the payment that they are waiting for, and also, when they expect to receive it. This way, they will negotiate and enable you to agree to a partial payment of the debt and set a definite date for complete payment.

MY ACCOUNTS MANAGER IS ON HOLIDAY

This is probably the weirdest reason behind non-payment of bills or outstanding debts. The reason is that no business system these days rely on one individual this much that even payments cannot be made in their absence. This is just an excuse and debt collection Australia professionals know how to deal with this situation easily.

I NEED MORE THAN ONE PERSON TO SIGN THE PAYMENT

This sounds fair enough, but the same principle discussed above also applies here. Why hasn't the person signed the invoices in advance before going on leave? Debt collection professionals are entitled to get the details of exactly how long they will be unavailable. To avoid these issues, lenders and financial institutions should send invoices to the correct contact in the accounts section and the person who ordered the goods or services directly.

WE NEVER RECEIVED THE INVOICE.

This is another quite fair reason, as invoices can go astray sometimes and end up in the spam box. However, experts in debt collection services take this reason or excuse as a delaying tactic. To make sure that this does not happen, you should keep your contact details updated and get an acknowledgment receipt of the invoice from the accounts team. Once the invoice has been sent, there is nothing wrong with calling the debtor to confirm whether they received the invoice.

HOW DOES THE DEBT COLLECTION PROCESS WORK AMIDST THESE EXCUSES AND REASONS?

All these excuses and reasons make the debt collection process complex. This is why companies don't mind hiring debt collection Australia professionals who have a customer-focused approach and they ensure that the debtor will be handled competently and with complete care. They design the entire debt collection process to recover outstanding dues and clear pending bills while keeping complete control of the process. A number of steps are involved in this and we have covered the details here.

STEP 1 – THOROUGH ASSESSMENT

Once a debt collection company is approached and given the contract, the professionals first assess your needs. If the debtor is missing, they engage in tracing them using state-of-the-art software and their contacts in the local authority. They also understand the type of debt you have and its value. Next in the list is how many debts are outstanding and how a business is affected due to all these outstanding debts.

STEP 2 – IN-HOUSE DEBT COLLECTION

The second step involves starting third-party intervention, which means the accounts manager from the debt collection team will initiate communication with the debtor and provoke them to clear the debt. Most debt collection Australia agencies get paid only after successful debt recovery, and this gives clients the peace of mind that the debt collection company is working diligently and with full dedication. This belief of clients motivates debt collection professionals to offer debt collection services with more accuracy, effectiveness and precision.

STEP 3 – FREE LITIGATION PACKAGES

If the initial communication and friendly approach fail to recover the debt, the next step is to seeking an appropriate pre-litigation package. In this step, a letter of claim will be sent and it will explain the relevant pre-action protocol set by laws and authorities like ACCC and ASIC.

STEP 4 – EVALUATION FOR LEGAL ACTION

In some cases, the debt remains unpaid, and in these situations, debt collection services experts discuss the best legal action they can take. A significant part of these actions is sending 'serving a statutory demand' or requesting to begin insolvency or bankruptcy proceedings. A reputed debt collection Australia partner will be needed in all these legal actions performed by a financial institution or lending agency. They have a team of legal experts who will navigate the legal side of the debt collection process.

WHAT ARE THE BENEFITS OF SEEKING SERVICES FROM DEBT RECOVERY PROFESSIONALS?

We all know the severity or headache associated with managing debtors and chasing them to clear outstanding debts and payments. This is a time-consuming process, and often, businesses fail to invest the right amount of time for debt collection in Australia. Seeking debt collection services right in the beginning is a smart move for companies with limited internal resources and no time to involve in chasing debtors. These debt collection services come with the following advantages.

TRIED AND TESTED PROCESS

The immediate benefit of debt collection services from debt collection Australia professionals is that they are highly experienced in offering them. As a financial institution, you can take advantage of their professional expertise and practical knowledge related to debt collection.

RIGHT TO ESCALATE TO LEGAL MEASURES

Debt collection professionals have the right to take legal steps if standard credit control processes fail to deliver the desired results. They are fully aware of the options available regarding legal proceedings and how to persuade a debtor to settle the overdue debts. Businesses often avoid legal proceedings, as they believe this will negatively affect the company's reputation.

They have the ability to complete the job and act with utmost professionalism and integrity to recover outstanding debts. They are fully committed to delivering successful results, and for this, they are unwaveringly focused on the customers and the debtors. Their debt collection strategies are designed to be highly proactive and effective.