No Asset Procedure (NAP) is something that you should be very worried about, why, because it allows a debtor with total debts under $40,000 and no realisable assets and no means of repaying, to apply to the Official Assignee to be granted NAP and in effect have all their debts written off and you have no right to pursue them for any unsecured money owed to you.

There are a few other criteria like this won’t write off student loans indicating that the Government is keen to protect their money but not yours.

So how do you protect yourself from something like this?

Well the best way is not to give credit. Far too much credit is given to people who don’t deserve it or in situations where it is not necessary.

But if you are going to give credit make sure you know the credit worthiness of the person to whom you are giving credit by obtaining all the necessary information about the debtor and doing proper credit checks.

Make sure you are a secure creditor by registering the debt on the Personal Property Security Register (PPSR).

To find out more about the pitfalls of giving credit and how to avoid bad debt  contact Just Collections today.

How to get paid & not the run around

Are debtors who are slow to pay sucking the fun out of business for you?

“The cheque’s in the mail.” Yeh right, we’ve all heard that before. Trying to get money out of late payers is an aspect of business many people find onerous if not downright unpleasant.

But it doesn’t have to be! To quote an old cliché, an ounce of prevention is worth a pound of cure.

Here are just two things you can do to protect yourself:

1. Put systems in place to make it clear to your clients before you provide them with your product or service exactly when you expect to be paid and what will happen if they don’t play by the rules. Just writing pay by the 20th of the month on the invoice isn’t sufficient!

2. Be very careful to whom you extend credit. New privacy and bankruptcy laws are making it harder to track down and recover debts so you need to do thorough checks before making that decision.

And there are a number of other things you can do too…

How Just Collections can help

• Collect debts that are generally 90+ days overdue. We work on commission so if the debt isn’t collected, we don’t get paid. We have an 85% success rate at collecting bad debts.

• With the right Terms & Conditions all costs of collection can be passed onto the debtor. Find out how!

• Prevent bad debts and improve your professional image by establishing sound credit management systems and procedures.

Free Initial Consultation

Contact Just Collections today to find out how we can help you avoid bad debts and present a professional image. There is no charge for the initial 30 minute consultation. We promise it will be time well spent!

Business Owners…
…How to increase cashflow by up to 45% within 90 days

Whether you have just started out in business or you run a highly successfull corporation the one thing that can sink your dream quicker than you can say “the cheque’s in the mail” is the lack of cashflow.

Today’s marketplace is fierce and it has become extremely critical for you to stay on top of your credit management. If you offer credit, the chances are, you will at some point encounter problems one way or another.

This site is dedicated to providing solutions to business owners of all industries and covers all issues that surround credit and cashflow.

If you offer credit or run accounts, chances are we can increase your cashflow immediately by 20% and up to 45% within 90 days.

Debt Collector is a person who works on behalf of the creditor being the person or company that provides either goods or services as being their primary business.

As the name suggests, the person collects the debts for a creditor that have fallen overdue and outside of credit terms agreed to previously.

Naturally, the debt collector will have full authority and becomes a shadow of the creditor and accounts department of that business.

In today’s business environment a debt collector is a professional unbiased third party that can often assist to resolve issues between the Debtor and the creditor as they are not emotionally involved.

This in most instances can lead to a mutual resolution and agreed payment with out court action which enables both parties to move on.

Often companies are concerned whether employing a debt collector will be expensive or upset their customers.

A debt collector in most instances will work on a commission basis and must collect the money to get paid so they must be effective and know what they are doing to get results including most laws that are involved in businesses daily operations.

If additional services are provided such a tracing a debtor, legal services or service of legal documents these are additional but be should not be expended without their client’s approval.

In many instances where company’s have formal credit applications these should contain clauses that allow these collection charges to legally be passed onto the debtor so it can make the costs related to collection quite minimal.

The cost of the money outstanding to a business can far outweigh the costs of collection and if not dealt with quickly are often lost through inaction or half hearted promises by the debtor to pay and gets so old it’s uncollectable.

Chasing overdue debt can be a daunting task particularly for those that have never had to do it before or hate to do it and do such a poor job, do not achieve the desired results.

The time required to chase overdue debts can distract resources in the business away from what they should be doing which is generating further profitable business. Professional Debt Collectors will save headaches, considerable time, and money as debtors are often evasive and simply disappear to avoid their creditors.

Their experience in dealing with debt situations daily across many types of businesses provides a great deal of experience in achieving the required result

One thing that should be remembered is that just because you have retained the service of a debt collector does not mean they can collect the debt, there are no guarantees, after all, you are dealing with people who had no intention to pay at the outset.

In most instances over due amounts collected are in full payment but often there are debtors who need to pay an account off.

This should always be considered and is a lot better than having to write the Funds off or expend further expense trying to get the full amount through court action only to be instructed by a court that the repayment is acceptable.

A debt collector should be able to manage the debtor to ensure those payments as agreed are made on time. They can also help to secure the position better if required by obtaining additional security documents from a debtor prior to making such repayment agreements.

It is important to make the decision to retain a debt collector in the early stages while the debt is still ‘Fresh” and makes the chance of getting recovery a great deal higher.

Should other persons need to be contacted to establish any facts about the debt they are still likely to be there to assist in the resolution process and does not allow the debtor to have conveniently forgotten about it.

In addition you put a debtor on notice you are serious about recovering those overdue funds.

The statute of limitations on debts in New Zealand is 6 years which is really quite a long time and it is suggested if you have left it that long it will be extremely difficult to collect if at all.

From the perspective of the Debtor, they often believe that debt collector may not be equipped with adequate knowledge but today’s debt collectors are a very different breed armed with an arsenal of skills experience and resources.

To minimize you over due debts – CREDIT CHECK your potential customer.

Paul Easton is working with http://www.DebtForce.co.nz a Debt Collection Agency based in New Zealand with experience spanning 30 years

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