Benefits of Using Services of a Debt Collection Agency

If you look at an Annual Accounts Statement there is likely to be a column Every company, small, medium or big that is in the financial sector always has 'receivables’ in the form of dues owed by customers. denoting 'bad debts' or ‘provision for bad debts’. Some of these amounts may be recovered, some not at all, or through long-winding legal procedures that can stretch through many years. The international accounting firm Pricewaterhouse Coopers (PwC) estimated that in the mid 2000s, external collection agencies recovered debts to the tune of $30 billion annually. This is a whopping amount!

In such cases, Sydney companies may either deal with outstanding receivables through internal mechanisms or outsource the collection of such amounts owed, to external debt collection agencies in Sydney. These are third-party commercial collection agencies contracted by the company to use the skills and resources that the agency has in recovering the amounts due. Such an agency is called a Debt Collection Agency. These agencies are governed by the regulations of the Fair Trade Debt Collection Practices Act and so they have the knowledge and the expertise of the do's and don'ts associated with the collection of debts.

There are many benefits accruing from using a Debt Collection Agency, among these are:

• The internal accounts department of a company is usually responsible for collecting amounts due to the company; however, 'aged receivables' as long-standing debts are referred to require a lot of time, skill and dedicated effort which may require intensive training. Since delays can cost the company extensively, a third-party service or Sydney debt collector is fine-tuned to handle this job exclusively and therefore able to recover money that might otherwise end up not being recovered at all.

• Sales teams in companies that are owed amounts by clients are sometimes not paid their commissions or incentives if monies are outstanding from customers. This forces sales people to spend a great deal of time working to recover the money rather than doing actual sales calls or sales generation for future revenues. This greatly impacts the revenues of a business.