Debt Collection Services Written by Kaizen Enterprises Pty Ltd
PDF Print E-mail
Debt Collection

 

Key points:

  • Kaizen Enterprises is a licensed commercial agency that operates under the strict boundaries of New South Wales law.
  • We operate principally on a 'results-only' basis, which means that there is generally no upfront cost.
  • We aim to collect debts in full within 10 working days; alternatively, we will devise a collection strategy if immediate repayment is not possible.
  • We can assess bad debts for a nominal fee, and either assist with collection or provide third-party write-off certification for tax purposes.

More information:

Kaizen Enterprises is a licensed Commercial Agency, specialising in negotiating with debtors, and provides a seamless extension of your collections department.

We understand the psychology of debt collection, and we also operate within strict legal boundaries under the regulation of the Commercial Agents and Private Inquiry Agents Act 2004 (NSW).

Successful collection relies on the skill and understanding of the person making the call or conducting the visit. Using a professional debt collection service will often save you time and reduce the collection cost, while freeing your personnel to concentrate on controlling cash flow. In many cases it simply doesn’t make sense to devote 80% of your resources to 20% of your debtors; if you conduct a time/cost comparison, it is easy to see the benefits of outsourcing delinquent debts for collection.

By contracting Kaizen Enterprises to handle your debt collection, you will improve your bottom line, reduce your cost of borrowing and increase customer satisfaction by resolving issues in a timelier manner.

Kaizen Enterprises provides a standard contract including a Service Level Agreement. When you engage us, your organisation issues accounts by completing a simple Debt Collection Placement Form. The Placement Form covers the key information required to enable the debt to be collected. The form asks for the debtor’s name and contact details, and amount owed, preferably with the date of the debt. Click here to download the Debt Collection Placement Form. (Note: May take a up to one minute to download, depending on the speed of your computer.)

In some cases an account history may also need to be taken. If we feel that the collection is not routine, a representative will interview relevant personnel and compile a brief account history.

We usually make a first attempt to contact the debtor within one working day, with the objective of either of the following within 10 working days:

  • Full collection; or
  • Provision of a report outlining any outstanding issues, followed by:
  1. A full collection; or
  2. Agreed compromise; or
  3. An agreed repayment plan.

The debtor is requested to pay the monies direct to the client, or to its bank account in a way that allows the payment to be verified. If a prompt repayment is not agreed to, we then prepare a brief report and seek further instructions from the designated contact within the client business.

Kaizen Enterprises maintains a written record of all conversations that include issues relevant to recovery actions, with both the debtor and the client.

Peace of Mind When Writing Off Bad Debts

If you have debts that have been written off because they were regarded as too problematic or too difficult to collect, but which you feel that could still be collectable, Kaizen Enterprises can assist you to achieve a more qualified resolution. This will allow you to claim a tax deduction for the bad debt based on third-party certification.

Many businesses routinely write off debts without having exhausted all avenues of recovery, simply because engaging solicitors or debt collectors on an hourly rate is too risky where the likelihood of recovery is poor. In such cases there is no commercial ‘peace of mind’ because of the lingering doubt that monies might still be recoverable.

Kaizen Enterprises can quickly review such matters for a nominal Account Fee. If the debt appears to be collectable, we will then quote a percentage fee for collection on a ‘results only’ basis. If the debts are truly uncollectable you will receive a written report stating the reasons why, and you will be able to write off the debt for tax purposes.

Attachments:
Download this file (dcplacement.xls)dcplacement.xls[Debt Collection Placement Form]23 Kb