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 ‘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!