We have recently, as a Company, had two outstanding Debt Recovery outcomes. One was in Darwin and another was in central WA.
Historically, our collection data – accumulated from 1000's of debt collections over the last 26 years – tells us that we are most successful if the debt is around 90 days old, or less.
Two other extremely important components to collection success are; 1) having 3 or 4 points of contact for the debtor; and 2) having proof of debt signed Quotes, Credit Applications, Purchase Orders etc with comprehensive Terms & Conditions of Trade attached. With all this in place, EC Credit Control has a far greater chance of being successful we simply have more â€˜ammunition' to use against their debtor.
For our two recent success stories, they both had good points of contact, one had our Terms of Trade and used them, but both were a long way past the 90 day recommended maximum time. Despite all that, we successfully recovered $24,7000 in one case and $130,000 in the other!
Whilst this is a great outcome for our clients, we would recommend never letting an account get this large arrange a payment schedule and get progress payments better for cash flow and it lowers risk!