When is the correct time to hand over a matter for debt collection?

01 November 2019 ,  Marié Combrink 779

This can be a very difficult decision for any business or person that is relying on clients and or even patients in some situations to pay statement of accounts that has been rendered.

 

We at Neumann van Rooyen understand that proceeding in most situations with handing over a client or patient for debt collection, with whom a “business” relationship has been established over a long period of time or even recently is not what you want to do, but have to do.

 

The next concern is normally legal costs and expenses. The issue of costs remains a determinant factor when one is deciding whether or not to institute legal proceedings, as well as the nature of the proceedings to be instituted.

 

We offer a unique and tailor- made debt collecting fee structure that will suit each client’s needs, ranging from individuals to corporate entities.  Fee structures range from fixed fees per matter for each litigation phase to success fees for amounts actually recovered.

 

Taking into consideration your business relationship with the debtor, debtors are first subject to a soft Collection process before we proceed to formal legal steps, if the client prefers it.

During this process we identify debtors that wish to continue their business relationship with the creditor and we focus on negotiating suitable payment plans, acceptable to our client.

 

In providing unique fee structures to our clients, we experience that the client is better informed regarding possible risk and expenses and is able to make more informed decisions regarding when to proceed with a debt collection process and further hereto up to what extent.

 

To answer our main question as to when to hand over a debt collection matter, I would suggest as soon as possible.  Most clients are advised to hand over matters within at least 60 days of the statement of account has been unpaid, but not longer than 90 days.  We are in a community where people and businesses relocate on a regular basis and the sooner the matter is handed over to us to assist in the debt collection process the sooner contact can be established and unnecessary expenses be avoided.  Take cognisance that in the time period your statement of account is unpaid, further debt can be accumulated by the debtor which can result in a longer, more expensive legal process to collect the debt efficiently.  We understand business relationships and in a tight knit community such as the Goldfields, we want to assist in maintaining of good business relationships as best possible while enforcing payment of outstanding debt.  Unfortunately this is not always possible, but in these situations our communication with our clients are open and honest and you as our client is properly informed of all processes.

 

 

 

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