Finding a way to resolve the debts owed to your business by unpaying clients is a critical task for business that need to pay attention to managing their cash flow, while still finding a means of collecting that keeps their integrity intact. This makes it essential for them to find assistance from a debt recovery service that ticks all the boxes in practicing fair business, at reasonable prices, and without the risk of embroiling your business in a nasty legal battle. The process of debt recovery is often shrouded with uncertainty; which means that making the right decision can make or break your business processes and reputation.
So to help you select a debt recovery business that will help and not hinder your business practices, here are some positive traits to look for in them.
The first thing you want to make sure of, is your prospective service provider’s credentials. The Council for Debt Collectors, a regulation service setup in 1998 by the South African government is an institution that manages the fair practice and appointment of qualified and licenced debt collection agencies through stringent regulations and guidelines. So, be sure to check how closely they are aligned with the CFDC to ensure that they engage in fair business practices. A specialised understanding of South African law is also essential for them to follow the correct procedures, making a minimum of an LLB an essential peace of their accreditation.
It may happen that bad debtors skip town to avoid payments, which can make location and debt recovery difficult. Agencies that make use of Skip Tracing have access to large databases of debtors’ personal information and contact details, which makes it easier to recover those debtors who are a flight risk.
A worthwhile collection agency should have Error and Omission Insurance in place to protect themselves and you in the event that a debtor should take you both to court due to illicit, or perceived illicit collection practices. Without this insurance, you could have to foot the bill for legal procedures, and could quickly have your company’s good name dragged through the mud.
With the above points in mind, you should have little trouble sourcing a debt collection agency that has your best interest in mind, and will never conduct collections in a way that could harm the reputation of your business, while still helping bad credit to be settled. If you would like more information on acquiring the right debt recovery service for your business, feel free to contact a consultant from Brian Blignaut Attorneys Alberton, or visit our website for details.
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