How To Get Free Debt Collection

If you’re like the vast majority of business owners what you hate most about referring your debts to a collection agency is the thought of them lining their pockets with your money.

As you may or may not know debt collectors generally charge 2 sets of fees: an up-front engagement fee to pursue a debt and a commission on every cent they recover. And while most debt collectors charge a commission of around 20% some of the less scrupulous firms will whack you with outrageous commissions of up to 45%!

However, with just a few keystrokes on your computer you can instantly immunize your business against such fees forever more.

So what’s the magic cure?

Easy!

Just put up a sign where your customers can see it that states:

“Unpaid Accounts Will Incur Late Payment Fees And Collection Costs”

From that moment on any new invoices you refer for debt collection, every cent spent to recover that money will be passed directly on to your debtor. After all, they’ve defaulted on payment. They’re the ones who should be penalised, not you. This way you won’t ever pay a cent for recovered debts.

As simple as this secret is, there are 3 important points to keep in mind…

1. Wording Is Critical.

The wording you display must read “Unpaid Accounts Will Incur Late Payment Fees And Collection Costs” Any alteration or modification of this will more than likely jeopardize your legal right to charge penalties and pass on collection costs. So stick with this wording and you’ll be fine.

2. Location Is Critical.

For this notice to legally empower you to pass on collection costs it must be displayed where a customer can see it BEFORE they engage your services or purchase your goods. So if your customers can engage your services without actually stepping foot on your premises, displaying this wording only in your office will NOT give you the right to pass on collection costs.

A good example is a carpet cleaner or pest exterminator. If this notice is not displayed where the home-owner can see it before any work is commenced then should the home-owner subsequently default on payment the trades-person can not pass on collection costs. Whether the home-owner sees the notice or not is irrelevant. What’s important is that this wording is displayed where it can be seen before any work is commenced.

In addition, should you supply quotes or extend credit then your respective documents must include this statement. Similarly, if you conduct business online then your website must also conatin this wording.

3. Timing Is Critical.

Displaying this sign today does NOT give you the legal right to pass on collection fees for existing invoices. So if your current Terms of Trade do not allow you to pass on collection costs, putting up this sign will not miraculously allow you to do so on existing overdue accounts.

Now you might be tempted to think to yourself, “Who’ll know when I put up the sign? I’ll put it up today then send my existing bad debts to a collection agency and no one will be the wiser.” Now while you might get away with it, if you get caught you’ll be up for a 0,000.00 fine! My advice: put up the sign today and accept the fact that you can’t claim costs on your existing accounts.

Bottom Line: Don’t set yourself up to be exploited. Display these words where your customers can see them and you won’t be penalised ever again to get back money that’s rightfully yours.