Successful Debt Management

Is your business cash flow secure? Can a professional debt collection company offer you peace of mind by securing your cash flow?

We all understand the principle of business is to provide goods or services to a group of chosen customers or, more often, those customers that choose you.

Along with that first principle is the belief you will be paid promptly when agreed and quite rightly so, but so often there is a percentage of any company's clients that simply do not.

Cash flow is made up of prompt customer payments for those goods or services provided and without it the business is immediately in danger. After all, we are talking about the cash in the business that allows for daily running and accurate projections for the future of its business growth.

Every debt, no matter how small, is important to profitability, particularly in times as they are right now.

I have been in the credit, security, and investigation industry for over 30 years, working for some of New Zealand's largest companies.

Yet it never ceases to amaze me that businesses do not seem to appreciate that they need to protect and secure the unseen cash in their debtors' ledger. It's the unmanaged, unprotected back door where the unseen losses can occur.

The appointment of a professional debt collection company to assist in the management of this critical aspect of the business can save thousands of dollars and litigation costs.

The skill level available within these organisations today should not be underestimated .

Think about it, the resource in a debt collection company generally far outweighs the resource you will find in a solicitor's office where a debt collection matter may be handled perhaps once a month or less.

A debt collection agency deals daily with complex debt issues at a commercial level. It is their core business, so it is logical to talk to an organisation with years of practical experience and which can better assist in the delicate resolution of large sums of money, using options not normally considered.

Generally, they have seen most situations and can give you the answer immediately and in most instances at an extremely modest cost. Also, it should be remembered that a solicitor gets paid for time and attendance irrespective of the result.

Solicitors could spend hours researching the case at your expense whereas most agencies get paid on a commission basis usually on the amount they recover, so they have to work a lot harder and often be a bit more inventive to obtain acceptable settlements for all parties concerned, and without litigation where possible.

I don't know of too many solicitors who would ring their clients' debtors at night to find out where your money is.