If you have made a business decision to allow your start-up to offer goods on credit, you will soon discover that getting your money can be challenging. Not only will this eventually start consuming all of your time, but it will also create tension between you and your customers.
Many businesses avoid the tension and up-and-down cycle of dealing with slow or non-payers by using the services of debt recovery lawyers situated around Australia. Choosing the right lawyer can increase your success in debt recovery.
Take the Frustration Out of Debt Recovery
While you may be an expert at sales or marketing the products your business sells, you may find the debt collection aspect a bit challenging. Fortunately, opting to use a lawyer who specialises in debt recovery may be the solution you’ve been looking for. We’ve listed a few of the top reasons why using a debt recovery lawyer is the best option for your business.
1. Access to Skilled Legal Advice
The number one benefit of using any type of lawyer is the access you’ll have to their skilled expertise. In a debt recovery scenario, this can mean knowing what kind of action to take at various times of the process.
Your debt recovery lawyer will be able to provide you with the right information to help you establish the validity of your debt. They will also be able to advise you on the legal costs you can start charging your defaulters.
More importantly, they can also advise you of strategies that are not only effective but also legal. The most effective skills you can look forward to include:
- Recommendations for alternative dispute resolution
- Negotiate payment plans
- Initiate legal proceedings if necessary
- Provide the most suitable approach to each case based on its merits
2. Adds a Sense of Seriousness to Your Demand
If you have to struggle with your debtor to pay you, then they are clearly not taking you seriously. A debt recovery lawyer will use an official document, on a company letterhead, to make the payment request on your behalf.
This lets your debtors know that you are serious about holding them to the original arrangement. In some instances, these letters advise the debtor that further action can be taken if they fail to pay.
3. Offer a Professional Approach
Another huge benefit of using a debt recovery lawyer is that the matter is handled professionally. There’s very little risk of your company getting a negative reputation for the way you choose to enforce getting the funds owed to you.
Debt lawyers know how to negotiate with your clients in a professional but stern manner. They also don’t resort to threatening or harassing behaviour that your clients might experience from a third-party collection agency. This type of approach often makes debt collection more effective because an experienced attorney has a higher success rate.
4. No Hidden Costs
Australian lawyers have stringent rules about being upfront with their costs. This means that they will tell you upfront what you can expect to pay for their debt collection services. Fortunately, most lawyers charge fixed rates, and these charges can often be recovered from the clients who owe you the debt.
5. Allows You to Focus on Your Business
As a business owner, you will have a lot of different aspects of your business to focus on. The most important being producing quality products, marketing, and shipping. You also need to focus on customer service.
Adding the pressure of dealing with defaulters can make your workload difficult to deal with. Outsourcing your debt recovery takes some of the pressure off your shoulders and allows you to focus on the crucial aspects of running your business.
6. Ensures that Your Rights Are Protected
When dealing with clients in your business, a lot of emphasis is placed on the “customer’s rights”. However, what about your rights as a business owner? A debt recovery lawyer will ensure that your debtors don’t take advantage of the situation.
Customers often do this in a few of the following ways:
- Making false claims about product quality
- Claiming customer service wasn’t adhered to
- Engaging in harassment to avoid making payments
- Continuously engaging in false promises to make payment
Debt recovery lawyers act as a buffer between you, as the creditor, and the debtor. They will also assist with resolving any potential issues that may be holding up payment from the customer’s side. They will also advise you of the processes to follow if your clients don’t show any indication of paying.
Final Thoughts
Debt recovery can be difficult if it’s not an aspect that you have a lot of experience in. It also takes your focus from your sales and marketing efforts.
Avoid defaulters getting the better of you and cutting into your profit margins by opting for a debt recovery lawyer. Having that angle of your business handled by a legal professional will give you peace of mind that the situation is being handled by an expert!
