The main reason why business's fail is poor "Cash Flow". That is when clients do not pay their accounts on time to enable a business to meet outgoings such as wages, rent, purchases, loan repayments interest etc. Often to try and improve "Cash Flow" a business owner will spend considerable amount of time chasing debts and therefore not being productive and generating revenue this also contributes to business failure. There are three components to Debt Recovery and all tailored to assist with "Cash Flow".
This service is purely a collection service where we will follow up the clients of a business to have them pay their outstanding accounts once they become due. At this time those clients have not faulted on payment but are possibly just tardy and need a gentle reminder.
It is important when providing this service that the integrity of our client is preserved to encourage an ongoing relationship with his client. When a debt is proving difficult to recover then consideration is to be given whether court action is required.
If a client is refusing to pay or becoming difficult to recover funds from and the process of collection has been exhausted then the only means left is court action.
In Western Australia debts up to $74,999 can be claimed through the Magistrates Court of Western Australia and debts $75,000 and above can be claimed through the District Court of Western Australia. Once court action is commenced, it will impact on the person being sued's credit rating as the information becomes public, and will appear on the records of Veda where most financial institutions refer to when seeking a credit reference for loan applications.
The aim is to seek judgement against the client and then proceed to enforce payment.
Often debt occurs because companies do not engage their clients properly. There are certain questions that need to be asked:
From experience, a client apologising after the event that he did not understand the contract he signed does not get your accounts paid. Sound Engagement practices will go a long way to preventing debt.
Often companies are more conscious on the retention of a business relationship than ensuring they are going to be paid for the service they are providing and this can sometimes prove fatal. If you have the expertise and skill to perform a required function you should expect to be paid for it. No one likes chasing money, or discussing costs and it is for this reason we have developed the above services.
The Fort Knox Recovery System is designed to take the pain away to ensure sound engagement practices are in place and regular follow up occurs when payment deadlines are reached.
Because costs, accounts and debts are such sensitive issues, communication is very important and at all times our client will be kept fully informed and we would be seeking instructions before proceeding to every step.
We are able to provide this service where we will act as a third party to a contract and hold funds in trust for payment of services and release them only when certain conditions are fulfilled.