Bad debts are a huge worry to businesses large and small all over the world. As the global economy continues to struggle so the problems caused by bad debt continue to worsen. These outstanding debts can have a detrimental effect on a company; the most effective way to recover this outstanding money is to employ a specialist debt collection agency. Read on to find out more detailed information on the benefits of using commercial debt recovery agency for debt collection in the Singapore Debt Collection.
The Singapore economy has been in the doldrums for the past couple of years ever since the banking crisis of 2007. This has had a negative impact on the majority of commercial sectors resulting in an increasing number of businesses going to the wall together with the level of bad debts rising ever-higher. The outstanding money in these liabilities can have far-reaching consequences for any company, which is why this issue is a major concern for all commercial enterprises. It may have a severe impact on business cash flow that then has a knock on effect on future investment, sales and ultimately erodes company profits.
Trying to get back the outstanding funds is a difficult task that is very time consuming and takes a lot of specialist knowledge. The majority of companies do not have the internal skills or resources to chase and recover bad debts in an efficient manner. The most effective way is to outsource the debt collection function to a professional debt recovery agency who are specialists in this area, with the ability to perform this function efficiently and professionally allowing you to focus on other key factors of your business.
In short bed debts = bad news for business. So why use a commercial debt recovery agency to recover these outstanding debts?
Highly efficient way to collect the outstanding debts
Professional approach enables debts to be collected more quickly
More skilled in actually locating the debtor in the first place, especially if they are overseas
Allows you to focus on other key aspects of your business
Then the agency will contact the other party through a succession of notification correspondence called demand letters, giving them plenty of time to respond and also offering the option to enter into negotiations. Failure to respond to these letters would result in some type of personal contact from the agency in an attempt to enter into some form of negotiation that will then escalate the magnitude of the issue. If there is still no response, the last resort would be some form of legal action, in most cases the threat of court action will bring the case to a conclusion. Using a professional debt recovery agency gives the best chance for you to get your outstanding debts paid in a timely and proficient way. Also, make sure you choose an agency that provides debt
collection services in the UK and abroad if you need to recover bad debts from overseas customers.
Most businesses face problems with customers who are unwilling to pay. Recovering debt poses a huge problem in such circumstances. Customers will ignore calls and notices or virtually disappear in some cases. In the scenario of global businesses this could turn out to be a major concern. However, interactive systems and practical debt recovery solutions have enabled businesses to deal with their debtors in a professional manner while they recover debts.
To begin with, if a company follows these measures debt recovery might never be a concern. The measures being:
o Billing quickly and efficiently
o Personal reminders to customers
o Ensuring feedback from customers
Explaining the adverse effects of debt recovery on the customers worthiness might help in debt recovery too. The company must resort to a debt recovery agency only when debtors do not pay back despite reminders or warnings.
How does a debt recovery agency recover debts?
o Collection letters/collect service: In the beginning of the debt recovery process, the agency will dispatch collection letters to remind your customers. Generally collection letters serve the purpose well.
o Solicitors letter: Through a solicitors letter the debtor is given a 7 day legal warning. If not adhered to, it would result in legal action against the debtor to recover outstanding debts.
o Legal Action: In case the debtor does not adhere to any of the above, debt recovery agency will assist you in legal action against the debtor Debt Collection Agency Singapore.
What are the benefits of Debt Recovery?
o Saves your time and money which you can use for your business plans
o Improves cash flow and value of your business/organization
o You can track the progress of debt recovery of your various customers and plan accordingly
Debt recovery services have proven to be a cost effective and efficient means to recover bad debts. They will offer up-to-date details on individual cases, guide you on the various options available and also provide information and support when your claim is disputed.
In today’s competitive business scenario, cash flow is one of the major determinants of the growth of a business. It is extremely important to ensure that debts are collected promptly. In case customers do not co-operate you don’t have any other option other than availing services of a debt recovery agency. But it is important to research and find a reputed agency. It is easy to be lured into the services of agencies online but careful research will lead you to a successful and efficient debt recovery agency.