{"id":404,"date":"2017-01-25T13:38:37","date_gmt":"2017-01-25T02:38:37","guid":{"rendered":"https:\/\/marshallfreeman.com.au\/blog\/?p=404"},"modified":"2017-07-26T11:25:23","modified_gmt":"2017-07-26T01:25:23","slug":"why-debt-collection-companies-are-better-than-lawyers","status":"publish","type":"post","link":"https:\/\/www.marshallfreeman.com.au\/blog\/why-debt-collection-companies-are-better-than-lawyers\/","title":{"rendered":"Why debt collection companies are better than lawyers"},"content":{"rendered":"

Why debt collection companies are better than lawyers<\/strong><\/h1>\n

Who is best to recover debts for your business?<\/strong><\/p>\n

Debt collection requires time and resources (both human and financial), but more importantly requires a clear process to recover those much needed funds. Chasing a debtor to collect your hard earn cash is never an enjoyable experience and unfortunately, even with an established internal debt recovery process in place it\u2019s not always guaranteed you\u2019ll recover the debt \u2013 so you need to consider the options available.<\/p>\n

When it comes to debt collection<\/a>, businesses need to know who to turn to: a lawyer or a debt collection agency? While every business has different needs, it\u2019s important to consider \u2018what\u2019 \u2013 or more specifically, \u2018who\u2019 \u2013 is best for your business.<\/p>\n

Jim Collins, a motivational business speaker and best-selling author of From Good to Great<\/em>, talks often of the importance of having the right people \u201con the bus\u201d and encourages business owners to continuously ask, \u201cfirst who, then what\u201d when it comes to business.<\/p>\n

\u201cYou are a bus driver. The bus, your company, is at a standstill, and it\u2019s your job to get it going. You have to decide where you\u2019re going, how you\u2019re going to get there, and who\u2019s going with you,\u201d writes Collins.<\/p>\n

\u201cLeaders of companies that go from good to great start not with \u2018where\u2019 but with \u2018who.\u2019 They start by getting the right people on the bus, the wrong people off the bus, and the right people in the right seats.\u201d<\/p>\n

So, when it comes to taking care of cash flow and settling those unpaid debts, who is the best \u2018who\u2019 for your \u2018bus\u2019 (business)? A lawyer or a debt collection company?<\/p>\n

Consider this: a debt collection company has debt collection not only in name but as their specialty and core focus, unlike a lawyer who may have competing tasks at hand. The right debt collection agency will work with your business \u2013 efficiently and ethically \u2013 to ensure your cash keeps flowing.<\/p>\n

One of the major differences between engaging a debt collection agency versus a lawyer is cost. The majority of debt collection company\u2019s fees are predominantly linked to a performance based model, whereas lawyer\u2019s generally charge a flat hourly fee which can add up significantly fast. A collection agency\u2019s model of \u201cNo Collection, No Commission\u201d is more advantageous to businesses seeking debt collection services as they will only get paid if they recover the debt \u2013 so it can be assumed that they are more motivated to achieve the best outcome for your business. There is also flexibility and room to tailor their fees to the needs of your business \u2013 a welcome advantage for those with cash flow issues! Another benefit is when debt repayments are drawn out, an agency\u2019s commission-based fee structure will again save you money over a lawyer\u2019s hourly rate.<\/p>\n

Who to choose for debt collection?<\/strong><\/p>\n

In Australia, there are obviously many debt collection companies and lawyers who can offer recovery services, so who do you choose? Choosing a company in the local area has its advantages, but not necessary crucial. If your company is located in Sydney, engaging a company of debt collectors in Sydney can give you direct access to them but also have someone on your side that is well acquainted with the local area, the top law firms and local courts.<\/p>\n

So, who is your \u2018who\u2019 when it comes to debt collection? Securing a specialist, it seems, is key. Even more so one with a fee structure that will best suit not only the tasks at hand but also your business. A good debt collection agency<\/a> might be a better fit for your business than a lawyer if these are your priorities.<\/p>\n","protected":false},"excerpt":{"rendered":"

Understand why debt collection companies are better than lawyers when trying to recover unpaid debt. Whether you\u2019re a company or SME, we outline the key benefits<\/p>\n","protected":false},"author":1,"featured_media":405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/posts\/404"}],"collection":[{"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/comments?post=404"}],"version-history":[{"count":5,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/posts\/404\/revisions"}],"predecessor-version":[{"id":591,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/posts\/404\/revisions\/591"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/media\/405"}],"wp:attachment":[{"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/media?parent=404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/categories?post=404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.marshallfreeman.com.au\/blog\/wp-json\/wp\/v2\/tags?post=404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}