Debt collection is one of those businesses that plays a vital role in modern business. Debt collection agencies work on behalf of the creditors to help collect the money owed by individuals or businesses.
Debt collection companies either charge a flat fee to collect the debt(s) or they take a percentage of the amount owed to the creditor. Many also work on the no collection, no commission model, whereby they only get paid if they are able to recover the money owed to you.
How does debt collection work?
Debt collection is a fairly simple process to understand. The whole process begins when an individual or business fails to pay on a debt owed to the lending company, known as a creditor. The creditors hire a debt collection agency to try to recover the money owed for the creditor.
Most debt collection agencies will first try to find out information about the individual or business that owes the debt (the debtor). Usually, creditors reach out to a collection agency when they are not able to get in contact with the debtor.
Once they track down the debtor they will reach out to them by telephone, mail, or email. They will issue a formal demand of payment and give the debtor a certain timeframe to pay off what they owe or to at least contact the agency to make arrangements to pay off the debt.
Eventually, the debt will get settled or will be taken to court where a judgement will be issued against the debtor for the amount owed. There are usually other costs associated with going to court, so it is in the debtor’s best interest to settle with the collection agency before getting to this unenviable stage.
So what are the top debt collection agencies in Australia?
Marshall Freeman is Australia’s leading debt collection agency that has been in business for over 20 years. They service all states and territories across Australia, so whether you’re in Melbourne, Perth, Adelaide, Darwin, Brisbane, Sydney or even Cairns, they have you covered offering a professional and ethical collection process to make sure debts a priority.
They also offer a free letter of demand template of which you can fill out and download if your looking to send a letter to a debtor prior to lodging a debt with a collection agency to recover on your behalf – potentially saving you money.
2. Local Recoveries Group
Local Recoveries Group is another leading debt collection company servicing both small and large business across all industry sectors. They are a pure results-driven debt collectors, providing piece of mind by following compliant and ethical collection techniques. They have a large client base with reputable brands across Australia which is a true testament to the quality service they provide their clients.
3. Slater-Byrne Recoveries
Slater Byrne Recoveries are a very high rated company in the Melbourne area. They are considered to be one of the most professional debt collection companies in Australia. Much like other agencies, clients have access to an online account.
Baycorp has been in business for over 60 years. They have experience working with finance, telco and utility, government, and general industry clients.
They are a complete debt management service and operate with both the needs of the client and the debtor in mind. They have a good record of collecting debts for their clients and are one of the most trusted debt collectors in Australia and New Zealand.
Remember…. Trying to collect a debt can be an overwhelming process. Debt collection agencies can take the hassle out of the process and make sure that both creditors and debtor’s needs are met.