When running a business, the unfortunate reality is that you are likely to end up with some kind of debts. As a business owner, you may find yourself in a position where you are not receiving payment for your goods and services. This ultimately leads to a business debt.
There are many reasons why your debtor may be unable to afford to make their payments, or quite possibly could just be avoiding making the payment. Attempting to chase a debtor and eventually recover the payment, can be both an unpleasant and time-consuming experience. The most unfortunate part of it all is that even after this, you may not receive the payment, despite your efforts.
At this point in time, it is likely you will need to get the help of a professional to try and recover your debts. So, who should you reach out to help you – a debt collection agency or a lawyer?
There are many differences between the two, so let’s break them down.
Debt collectors are successful through persistence, correspondence and negotiation using legal strategies to achieve the results by starting with the end in mind and building your case based on the evidence provided, often as simple of an unpaid invoice and contact details.
They will be sure to try their absolute hardest, as they only receive a commission if they are successful in recovering your debts. Not only does this usually mean that a debt collector is the cheapest option, but the option with the most value and depending on your terms and conditions costs of commission may be able to be deferred to the debtor.
Repetition, relationship and understanding of a debtor’s circumstances is how a debt collector earns their commission by getting the debt paid.
Lawyers on the other hand, operate on an entirely different billing structure and will often take action against a debtor in the courts however just because its permitted doesn’t mean it should be done or that it will get the desired result. Escalating too early leaves the creditor, you, with legal costs even if a successful order is achieved…but the order still needs to be enforced, which means more costs. Lawyers use a harsher approach, and it lets your debtor know that you are serious about retrieving the debts. This may be appropriate however a debt collector is going to ascertain if the debtor can afford to pay the debt. Capacity to pay is essential. No point spending money to get paid if the debtor has none, intends to file for bankruptcy or any other or a number of reasons why they may not be able to pay. A lawyer’s letter of demand can be seen as more serious than a debt collection agencies letter of demand, but that doesn’t mean it will work to your advantage. Naturally lawyers are also more expensive, as they bill for their time, rather than on a No Win No Fee basis.
While both have their pros and cons, one of the best choices you can make is to use a debt collection agency that also works alongside lawyers who they can use, just as eCollect does.
In this situation a debt collection agency is the natural choice for your best chance of recovering your debts. However, in some cases you will need a lawyer instead of a debt collection agency, and this is where using a debt collection agency that has associated legal professionals available to them, makes all the difference.
eCollect works alongside their associated legal firm, E C legal. This means that they will do their very best in recovering your debts, and then if they believe that the situation need to be escalated further, they can brief in their partnered team of lawyers to assist in the recovery.
Meaning not only will you have the best chance of having your debts recovered and returned to you, but eCollect will provide you with incredible value for money.