What type of businesses use Legal & Commercial?

More than 3,000 customers Australia wide use Legal & Commercial including veterinary clinics, accountants, wholesale suppliers, clubs, childcare, video rentals, undertakers, electricians, plumbers, waste management consultants, cleaning contractors,fitness centres, mechanics, estate agents, builders, carpenters.

How can I recover debts without alienating valued customers?

Take a firm but diplomatic approach. Discuss the situation with your customer, and try to resolve any problems so that you can reach an agreement. Explain what steps you intend to take to recover the debt. Bear in mind, customers that do not pay their debt may not be as valuable as you think.

Should I be prepared to compromise?

If the customer simply cannot pay there is no point in demanding immediate payment. Negotiating part payment and rescheduling the debt, confirmed in writing can help you recover some of the money you are owed and the chances of maintaining a good relationship are improved.

What is the minimum value debt that Legal & Commercial will collect?

The minimum amount we will accept for collection is $20.00.

Can Legal & Commercial credit default a bad debt?

Due to the Privacy Act, Legal & Commercial cannot default a bad debtor or divulge information stored on its database to a third party. Legal & Commercial recommends having solid Terms of Trade and Credit Applications with Personal & Directors Guarantees in place.

At what age can an account still be recovered?

Collecting debts successfully depends on a number of factors especially the age of the debt. Legal & Commercial accepts debts provided local laws do not prohibit collection. As a general guide, debts can be pursued for 6 years although successful collection usually occurs on recently incurred debts where the debtor is traceable and solvent and with no valid grounds for disputing the debt. Each case is assessed on its merits and the best course of action advised.

Can I recoup any collection costs from my debtors?

The only way you can expect to recover costs is to have proper Terms of Trade in place. Your customers need to be aware and agree that you may charge late payment fees, interest, legal and recovery costs as defined within the Terms of Trade for any accounts not paid within the agreed credit terms.

How long does the collection process take?

There is no accurate recovery time that can be quoted due to the individual circumstances of each debt. Our aim is to quickly identify a debtors willingness and ability to pay and then apply consistent pressure to obtain payment. We make it a priority that debtors quickly understand the debt is not going away and that action will only escalate if the account is not paid.

Do I pay commission if the debtor pays the account to me?

Once a debt is sent for collection the debtor will often attempt to bypass us to avoid further calls or letters. We aim to quickly finalise accounts, once a debt is lodged, any monies paid by the debtor directly or indirectly shall be subject to commission charges.

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