The right way to manage debt for businesses
Owning and running a business isn’t easy. There is plenty of official paperwork and documents to sign for daily operations. Managing the financial side of a business is another big task in itself. Good business owners will stay on top of payments such as mortgage repayments, rent, and equipment finance. Managing a business’s finances can become very complicated. It’s why many businesses choose to hire an accountant.
A Commercial Debt Collection comes into play when a business fails to stay on top of its finances. When a business signs a contract there are goods and services promised to another entity such as a business or commercial property owner. If the business fails to provide the goods and services agreed upon, they are in debt to the other party involved.
The business or individual who owes a debt is referred to as a debtor. They owe compensation for the completion of an agreement that hasn’t been fulfilled. The creditor is the individual or company who is owed money from an agreement. While a creditor is waiting for their debt to be paid they should have already sent an invoice to the debtor.
When a company or property owner is looking to collect their debt, they often rely on a Commercial Debt Collection agency. These agencies have their own Debt Collectors who are tasked with enforcing Commercial Collections. Commercial Debt Collectors are employed to represent the interests of the creditor. It is their responsibility to collect the debt that is owed.
How is Commercial Debt Collection regulated?
Commercial Debt Collections are highly regulated. This regulation is in place to prevent debt collectors from misconduct. This is an industry that has experienced abuse and deceitfulness from Debt Collectors in the past. That’s why there are certain collection practices that a Debt Collector is banned from doing.
Consumer information is often protected. So the only things Debt Collectors have access to are basic contact details of a business which are generally available to the public. Industry-wide regulation also ensures that any Commercial Debt Collection Agency is licenced and bonded before they can perform any collections.
When do I need a Commercial Debt Collection?
Not sure if you should hire a Commercial Debt Collector? Try asking yourself the following questions. If you answer yes to any of these then maybe it’s time to contact a Commercial Debt Collector.
- Do you have clients who consistently pay late?
- Do you have clients who are neglecting contact or refusing to pay a debt?
- Are many of your business’s invoices over 45 days late?
Remember that Commercial Debt Collection should be seen as a last resort. It’s only after various failed attempts at collecting your debt that you should even consider Commercial Debt Collection.
How a Commercial Lawyer can help
Commercial Debt Collection Agencies are not the only ones who can help you with debt collection. A Commercial Lawyer can also assist you with Commercial Collections. The advantage of using a Lawyer is that they also specialise in Commercial Litigation. After multiple attempts at debt collection, a Commercial Lawyer can provide you with sound legal advice. They can even represent you in court if matters escalate further.
Commercial Lawyers can also offer more subtle approaches to Commercial Debt Collection. A great example of this is sending a Letter of Demand. A Letter of Demand is sent when a person is owed money. It’s an option you can take after unsuccessful attempts at collecting your debt. This is usually seen as the last step before a Creditor is advised to take legal action against the Debtor.
Get legal assistance from P&B Law
Here at P&B Law our team includes qualified and experienced Commercial Lawyers. They are passionate about achieving the right result for you. If your business is being let down by unreliable Debtors then we can assist. We understand how important it is to retrieve debts in a lawful and peaceful manner. There’s no need to be antagonising.
Our Commercial Lawyers specialise in writing up Letters of Demand. They understand how important it is to write a compelling Letter of Demand. It can be the difference between successfully retrieving debt or taking the matter further in court. We believe the best result is a debt collection that doesn’t involve further legal action.
For a positive result and fuss-free Debt Collection, contact us today. Our Commercial Lawyers are ready to provide the support you need.