The easiest way to increase profits is to reduce your bad debts. Successful debt recovery depends on managing the debt, debtor, and available information. A significant cause of poor debt management is the lack of attention given to records, documents, and debtor information. Simple debt management controls can improve recovery by looking at a few issues without incurring unnecessary costs. Focus on these areas before you outsource your debt recovery:
KEEP EFFECTIVE RECORDS & DOCUMENTS
Maintain an effective system of keeping all documents that evidence (or prove) the debt, such as written agreements, orders, invoices, promises to pay, dishonoured cheques, credit applications, and correspondence with the debtor, etc.
DOCUMENT (DEBT) REVIEW
Make these documents and information available to aacad$ Recoveries
for review and ensure that the debt is in fact due. In most cases, this is obvious-the debtor has not paid by the due date, but occasionally, the debt is not actually due until a specific event occurs and there is no legal obligation on the debtor to pay until that event occurs.
CORRECT AMOUNT DUE
Know exactly how much is outstanding as at the date you provide instructions to recover the debt. Being able to state the correct amount shows credibility and discredits any suggestion by a debtor that the amount you are claiming is wrong. Knowing the correct amount, allows you to claim penalty interest from the debtor without fearing the debtor can dispute your claim for interest. If there is no agreement in place to pay interest, courts allow you to claim interest (normally lower than the statutory amount) from the date the cause of action arose until judgment, and a higher rate from the date of judgment. By claiming the correct amount, the debtor cannot set aside any judgment, or a claim for interest, alleging the amount was incorrect and you had no right to judgment.
Maintain and provide the current and complete names and addresses of each debtor. This information is vital to correctly ascertain the identity of the debtor, as a claim can fail if you provide wrong information. By providing as much information as possible at the beginning, it will assist in enforcing (or recovering) the money owing. Post Office Box addresses are useless if it is necessary to serve any demand on an individual debtor. You should be wary of dealing with those who only provide this type of address.
RETAIN AACAD$ RECOVERIES
Successful recovery is all in the timing. The faster you retain aacad$ Recoveries
, the better the chance of actual recovery! aacad$ Recoveries
can make demands on debtors for the payment of your debts after receiving your request and information.