by Henley Recoveries5 Real Debt Collection Wins: What Recovery Actually Looks Like
We wanted to share with you some real stories of real collections that we have been able to make for our clients lately. Getting results is our ethos. If we don’t get you results, we don’t make money. It’s plain and simple.
Each case below we wanted to give you an insight into what it looks like as we are working in the trenches for our clients across Australia securing results and outcomes. Each case looks slightly different. We did this on purpose to show you a different aspect of what recovery and collections looks like for different situations.
We hope that by reading these stories of real collections processes this can help give you a feel for how we might be able to help in your situations that you are facing.
If you have a matter that you would like us to take a look at (whether it’s similar or completely different to the cases listed below) – please reach out for a free, no-obligation chat about how we might be able to assist. Or simply email us with some details and our friendly team will guide you from there – info@henleyrecoveriesgroup.com.au
Case #1: $30k Account – Gone Quiet
This is one of those matters that will be familiar to a lot of business owners.
Our client had an outstanding account of approximately $30,000.
The issue wasn’t that the client didn’t know who owed them the money.
The issue was that communication had effectively stopped. The debtor was ghosting them.
The account had become one of those debts that sat in the background while the business continued running.
Calls (only when our client can find the time!) weren’t getting anywhere.
Emails weren’t getting anywhere.
The longer it went on, the more difficult it became to know what the next step should be.
This is where having someone else take ownership of the account can make a real difference.
Once the matter was referred to Henley Recoveries Group, we were able to step in as the third party, establish contact and start working through the situation directly with the debtor.
We weren’t interested in simply sending one letter and hoping for the best.
We wanted to understand what was happening, what the debtor’s position was and, most importantly, how we could turn an outstanding $30,000 account into an actual result for our client.
The result: a $30,000 payment arrangement established to resolve the matter in a few months.
For our client, the biggest benefit wasn’t just the money (although that’s super important!)
It was getting the account out of their hands, off their minds (!) and having someone else take responsibility for pursuing it.
That is a big part of what we do.
You should be running your business.
You shouldn’t be spending your day chasing an unpaid invoice for work you have already done. It’s time to move forward!
Case #2: 7 Small Frustrating Accounts, 7 Wins
Not every collection matter is a $30,000, $50,000 or $100,000 account.
In fact, some of the most frustrating debts for a business can be the smaller ones.
We recently had a client come to us with seven separate outstanding accounts.
None of them individually looked like a massive debt.
But together, they represented money that was owed to the business and, more importantly, seven separate people or businesses that the client had already spent time trying to chase.
Seven phone calls.
Seven sets of emails.
Seven excuses.
Seven things sitting in the back of someone’s mind.
This is where the numbers can be deceptive.
A $500 or $1,000 debt might not seem worth chasing aggressively.
But multiply that across multiple accounts, multiple hours of staff time and multiple follow-ups, and suddenly the cost to your business becomes much larger.
We took over the recovery process and dealt with each account individually.
Different debtors required different conversations.
Some were straightforward.
Some needed more follow-up.
Some required payment arrangements.
But the objective remained the same – get the money moving.
The result: 7 accounts. 7 recoveries.
This is a good example of why we always tell business owners not to look at an overdue account purely based on the dollar value.
Sometimes the real problem isn’t the size of the debt.
It is the time and energy you’re spending trying to recover it.
Case #3: Get It Settled
Not every debtor is refusing to pay.
Sometimes the money simply isn’t available immediately.
This is where the collection process becomes less about demanding a payment tomorrow and more about finding a realistic way to get the account settled.
In this matter, our client had an outstanding account of $5,000.
The debtor was communicating, but they couldn’t make the full payment upfront.
Rather than allowing the account to continue drifting, we worked through the debtor’s position and negotiated a structured payment arrangement.
This is an important part of what we do.
A payment arrangement isn’t simply:
“I’ll pay you when I can.”
It needs to have structure and schedule.
There needs to be an amount.
There needs to be a date.
There needs to be accountability.
And there needs to be a clear understanding of what happens if the arrangement isn’t honoured.
That’s where we come in! Once the arrangement was established, we continued to monitor the account and keep our client informed.
The result: $5,000 recovered over 5 weekly instalments! (Not to mention the debtor paid entirely for their recovery fees too!) (More information on this in our FREE consultations!)
For our client, the outcome was simple.
The debt was no longer sitting there unresolved.
There was a pathway to getting the money back.
And the debtor had a clear obligation to follow through.
Sometimes the best recovery isn’t about making the biggest demand.
It is about finding the right way to get the account settled.
Case #4: Head in the Sand
This is another situation we see regularly.
The invoice is overdue.
The business owner has already tried contacting the debtor.
The debtor knows about the account.
But they simply don’t want to deal with it.
Calls are ignored.
Emails aren’t answered.
Messages aren’t returned.
And every time the creditor thinks they might finally get an answer, there is nothing.
We had a matter involving a solar company where the outstanding amount was $7,000.
Our client had already spent considerable time trying to get the account resolved.
The debtor had effectively put their head in the sand. No disputes, no arguments, just nothing! Radio silence! Sound familiar?
Once we were engaged, the approach changed.
There is a significant difference between receiving another email from the business owner you owe money to and receiving correspondence from a professional recovery agency acting on behalf of that business.
Our job was to make the debtor understand that the account wasn’t simply going away.
We established communication, set out the position and worked through the available options.
The result: $7,000 collected in full within a few days.
This is one of the reasons we encourage businesses not to let overdue accounts sit for months and months.
The longer an account sits unresolved, the more difficult it can become.
Sometimes the debtor isn’t necessarily unable to pay.
They simply haven’t had enough reason to prioritise paying you.
Our job is to change that.
Case #5: When Collection Had to Escalate
Not every debt gets resolved with a friendly conversation.
And that is an important part of what we do.
Our job isn’t simply to send a letter, make a phone call and hope somebody pays.
Sometimes a debtor needs to understand that there are consequences to continuing to ignore an outstanding account.
We had a matter referred to us where our client had been trying to recover $9,000 for some time.
The client had already attempted to communicate with the debtor directly and had given them opportunities to resolve the account.
The problem was that nothing was happening.
The debtor wasn’t taking meaningful steps to resolve the outstanding balance and the account continued to sit there unpaid.
We started with the recovery process and attempted to establish communication.
When that didn’t produce the required result, the matter was progressively escalated.
This is where experience matters.
There is a difference between threatening action and actually understanding what options are available, when they may be appropriate and how to move a matter forward.
Depending on the circumstances of a matter, escalation can involve further formal recovery correspondence, credit reporting where legally available and appropriate, court proceedings, statutory demand processes or other legal recovery avenues.
The objective isn’t to escalate for the sake of escalating.
The objective is to get the debtor to take the account seriously.
In this particular matter, once the recovery process progressed and the debtor understood that the matter wasn’t simply going to disappear, the $9,000 was paid in full including applicable legal costs that had been incurred.
For our client, this was the important part.
They had reached the point where continuing to chase the debtor themselves wasn’t producing anything.
By handing the matter over, they had someone else managing the recovery process, communicating with the debtor and working through the available options.
And sometimes that is exactly what is needed.
Not every account needs legal action. And sometimes it’s about having that extra experience of knowing when to go legal and when it’s not worth the costs!
But equally, not every account can be resolved by asking nicely.
Knowing the difference is part of debt recovery.
Our job is to work through the situation, keep our client informed and pursue the appropriate pathway to achieve an outcome.
So What Can We Take From These Cases?
There isn’t one single type of debt that we collect.
There isn’t one single type of debtor.
And there isn’t one single recovery strategy that works every time.
That’s why our approach is tailored to the situation.
Sometimes the answer is a straightforward payment request.
Sometimes it is negotiation.
Sometimes it is a payment agreement.
Sometimes it is escalation.
And sometimes it means looking at further avenues such as a letter of demand, small claims proceedings, a statutory demand, payment default or other legal recovery options where appropriate.
Our role is to help you navigate those options and keep the recovery moving.
As we say to our clients, we treat your debt as if it were our own.
We take ownership of the matter, communicate with you throughout the process and work towards getting you a result.
Because ultimately, that’s what this is about.
Results.
We wanted to share these cases because we know that behind every overdue invoice there is a business owner waiting for money that should already be in their bank account.
Maybe it’s $500.
Maybe it’s $5,000.
Maybe it’s $30,000.
Maybe it’s a collection of smaller accounts that have simply become too frustrating to chase.
Whatever the situation looks like, it is worth having a conversation about what can be done.
If you have a matter that you would like us to take a look at – whether it’s similar or completely different to the cases listed above – reach out for a free, no-obligation chat about how we might be able to assist.
Or simply email us with some details and our friendly team will guide you from there.
info@henleyrecoveriesgroup.com.au
www.henleyrecoveriesgroup.com.au
Let’s get your outstanding accounts moving.
If you have overdue invoices that need recovery, you can easily submit a debt for collection by our expert agents in only five minutes, using our online form. The best part? It’s totally FREE!
SUBMIT A DEBT FOR FREE!
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by Henley Recoveries4 Urgent Things You Need To Do Before October 1
Where has 2026 gone?! For the most part, the end of the year signals a time of joy and a time where we all get to have some well earned rest. But it’s also for most of us, the busiest and most hectic time of the year leading up to it. Jobs to finish, deadlines to meet, bills to pay and a never ending to-do list.
One common denominator within all of this – effectively managing your cash flow is vital for maintaining the livelihood of your business. Here are four urgent things you need to consider as we enter the final quarter for 2026.
Follow Up With Your Debtors: Quickly
For businesses and individuals alike, Christmas comes around quickly! And the period leading up to it and afterwards can be a maze of money management. Ensuring all overdue accounts are followed up on in a quick and timely manner now, may be the difference between being paid and not being paid.
October to December is the busy period for many businesses. By following up on your debtors in a quick and timely manner now, and getting on the front foot, you can get in before other businesses they may owe money to. This means that your accounts are paid and settled before the funds dry-up. You can read more about following up unpaid invoices in this article.
Review Your Accounting Practices
Ensure that you have good follow up practices in place for your accounts procedures. Set yourself a clear time frame for following up. By doing so, you are minimising the amount of overdue accounts that you are left with. That way, only accounts that need a push to recover get sent through to your debt recovery agent – us!.
According to an article from Xero’s small business insights, cash flow falls to a yearly low across January. This means that striking while the iron is hot before the end of the year will be an effective method to get your invocies paid.
Forecast Your Cash Flow
If you have historical data for your business, use that to forecast figures for future holiday periods effectively. By understanding the data from previous holiday periods (and the time afterwards), you can ensure you can put plans in place and can mitigate unexpected cash flow shortages.
A great resource to help you with this is the cash flow forecaster from Business Victoria.
Sort Out Your Contracts
If you are a service-based business, or one that provides goods on credit accounts, then early in the year is the perfect time to organise your contract and account terms. Ensure that you have clauses to protect your business and that your agreement allows you to minimise the potential of non-payment.
We are currently taking expressions of interest for a free contract audit, to ensure you are adequately protected against bad debts. You can apply for this complimentary service on this page.
Whether the new year means that you are too busy to follow up on accounts or you need some more positive cash flow within your business, it’s important to sort out overdue accounts. Make sure that you are leveraging the time of year and making space for positive cash flow for your business.
If you have overdue invoices that need recovery, you can easily submit a debt for collection by our expert agents in only five minutes, using our online form. The best part? It’s totally FREE!
by Henley Recoveries$700k AUD Collected Within 7 Days: How Did I Do It?
If you’re like me, you probably read that line and thought that doesn’t seem possible. But as crazy as it sounds, this is one of the results we were able to attain recently for one of our large international clients in the airport logistics industry.
As this is the largest collection in my career I wanted to take the time to share how I did it in the hope that I can help you protect yourself from a difficult situation of being owed a lot of money. This kind of cash is a serious amount of money obviously, but even being owed $5k to $10k for a lot of businesses can be the kind of cash flow that makes a difference.
I sincerely hope the tips found in this article can assist you in getting your money collected. If you have any questions regarding this article, debt recovery or anything else please don’t hesitate to contact us anytime!
Know Your Client
For businesses and individuals alike, it is important to really know who owes you the money. This may seem like an obvious statement, but it is an under-rated concept to keep in mind.
It is easy to get caught out in this current business climate. You would like to think that businesses and your prospective clients are doing the right thing, but I see all too often well-meaning clients of mine trusting that their clients have good intentions. Don’t get me wrong, I enjoy good trusting client relationships as much as the next, but if you are dealing with a good quality client they will have no issue with making it very clear what their entity details are.
Unfortunately, my client in this situation had got caught in a difficult bind whereby their debtor was quite a confusing entity. Being an international business made this all the more confusing. My team and I had to spend many hours hunting down who the exact debtor actually was. Turns out there was multiple! This was one of the main reasons that our client was not able to get this payment sorted prior to us being involved.
Be sure to clarify early on the specific entity details of your client/s – ABN/ACN, legal entity details, any relevant or associated licenses (QBCC if you are in construction for example) or industry accreditations, addresses, contact details, and more etc. Doing a little bit of this leg work prior to conducting the work or providing the goods/services goes a long way.
Review Your Accounting Practices
Ensure that you have good follow up practices in place for your accounts receivables. Set yourself or your team a clear time frame for following up. By doing so, you are minimizing the amount of overdue accounts that you are left with. That way, only accounts that need a push to recover get sent through to your debt recovery agents.
It is very easy and tempting to let things slide out of either good-faith or putting it in the too-hard basket. Although we certainly love to help our clients when it does get to this stage, we know that good accounts management can mean all the difference for our clients to not have to go through these situations.
Now I’m not saying that our client didn’t or doesn’t have good follow up accounts receivables policies and procedures in place. But the truth is that keeping on to these large outstanding debts and making sure that it is not left behind is vital.
Implement an Escalation Strategy
One of the most important steps you can take is to show clearly to your debtor that there are consequences to non-payment. I see regularly that many debtors simply do not fear or do not take seriously the debt. And to be honest there are times where I don’t blame them.
Legal action is costly and I regularly indicate to my clients that there is a difference between getting a judgement and getting the cash. So the key tip here is to try and create leverage that makes you irreplaceable – if you disappeared then this would cause some kind of hurt for your client. This is not about causing pain, it is about being smart and holding leverage.
In this day and age you must think practically and logically when it comes to accounts management and you can only be too careful. In this case we showed clearly what the implications of withholding payment would be. That’s something the debtor did not want to risk!
Be Persistent and Communicate Clearly
Ensure that your debtor knows that there is an issue and that this issue is not going to go away. This harks back to my earlier point about strong accounts receivables practices. Some of our clients have teams for this process and for some of our clients this falls on to the lap of the decision maker in the business.
It is very easy to let these problems slip into tomorrow’s problem. But as tempting as it is to think this is something I can do tomorrow, acting persistently and communicating clearly with your debtor on a regular basis is a very important part of getting these types of collections sorted.
Of course, we are always readily available to jump in and handle your outstanding invoices for you. Time is money. We can take on these difficult ones for you to leave you with time to run your business and do what makes you money in the first place!
Consider Implementing Clear and Precise Contracts
If you are a service-based business, or one that provides goods on credit accounts, then it is always a great idea to organize your contracts and agreement terms. Ensure that you have clauses to protect your business and that your agreement allows you to minimize the potential of non-payment.
One very helpful and vital method that helped me get this matter collected so quickly was that the client had already done a bunch of the ground work by establishing very clear contractual terms. Of course, it doesn’t always mean that you are never going to be owed money. In my experience people often think that the contract doesn’t seem to apply to them!
Nonetheless, because these agreements were in place this made everything very clear and there was no wiggle room for the debtor to try and delay. In addition, by putting in clauses that allow for on-charging debt recovery fees and interest being accrued is another bonus for having your agreements and contracts water tight.
For more details and information about what terms of agreement you should implement read our article here!
Written by Patrick Henley – Director and GM of Henley Recoveries Group
For more insights, tips and all things debt recovery, connect with Patrick on LinkedIn!
If you have overdue invoices that need recovery, you can easily submit a debt for collection by our expert agents in only five minutes, using our online form. The best part? It’s totally FREE!
by Henley RecoveriesGuarantee Your Earnings in FY2026!
If you’ve been in business lately you may have noticed that liquidations are on the rise in the past few years. Businesses going under seems to be the new norm in the Australian economy and navigating this can be extremely difficult.
Even in the last few months we have been assisting our hard working and genuine clients who are trying to do the right thing only to be bombarded by out-of-the-blue liquidations. Unfortunately the age of trusting a companies or persons word is no longer here and we want to provide options and methods that you can put in place to avoid this as much as possible.
Sometimes you can’t see it coming and this can have serious ramifications for your cash flow and business security and growth.
Service Agreements
To protect yourself and your business it is important to have as water tight contracts and service agreements as possible.
If you currently do not have any contract or service agreement in place we would highly recommend getting some legal advice and setting these up so that you are supplying services to your clients under clear and specified terms. Speak to us to discuss your options.
Setting the expectations and clear guidelines for what services are being supplied, what’s excluded and importantly what the payment terms are is vital.
Book a free consultation today to discuss with us how you can secure your services.
Director’s Guarantees
While not suitable for all businesses or business models a Director’s Guarantee or Personal Guarantee can be a very effective implementation into protecting your business:
- An additional agreement on top of the service agreement that means the Director personally takes guarantee liability of any debts that the company incurs.
- Ask yourself – is winning the project worth the risk?
- Do your background checks into the company/business/people that you are going to work with.
- If they do not want to sign it (which is a common principle for a lot of Director’s and for genuine reason at times) then assess this further. What is the reason for not wanting to sign this?
- Are there other projects that are more in line with your risk appetite at the moment that you could focus on?
Answering all of the above key questions will do wonders for you in determining if this business relationship is the right one for you.
Know Who Your Client Is
One of the most under-rated methods and tools for guaranteeing your earnings this financial year.
Talk to us today if you are considering a new business relationship and want us to conduct a review of the company that you are considering working with/supplying services to.
We can take a background look into the company on your behalf to understand more fully if this is a business relationship that is the right fit for you!
How Can We Help?
If you have found yourself in a situation where you are unsure of your best options we are only too delighted to see how we can help.
Thankfully, we are used to the situation never being the same and we are ready to deal with what you have to throw at us. If you are unsure if you have done all you can to protect yourself or chase up an unpaid invoice, give us a call. We will be happy to discuss and give you some thoughts on your specific situation both in how to protect yourself and how to help get out of a difficult situation!
by Matthew GillPayment Agreements
Establishing effective payment agreements lies at the heart of the debt collection process. Whether it’s arranging a swift $100 payment within a week or structuring a six month arrangement to settle a $50,000 debt, debt collection can be the best solution for you. If you find yourself grappling with a debtor who is struggling to meet their financial obligations on a consistent and timely basis, turning to debt collection might be the optimal solution for several compelling reasons.
Negotiation
First and foremost, the debt collection process brings a structured and organized approach to the often challenging task of recovering outstanding payments. Debt collectors are adept at evaluating the financial circumstances of debtors, understanding their capacity to pay, and tailoring payment plans that align with both the debtor’s financial capabilities and the creditor’s need for resolution. This meticulous assessment ensures that the proposed agreements are realistic and achievable, increasing the likelihood of a successful agreement.
Time Savers
In addition to handling negotiations in an ethical manner, debt collection emerges as a reliable strategy to minimize the time spent on completing a job. Debt collectors not only possess the resources such as direct debit software, ensuring timely payments, but they also shoulder the responsibility of managing follow-ups and reminders that would typically demand the attention of creditors. By entrusting these tasks to debt collection professionals, creditors can significantly reduce the time and effort involved in overseeing the entire payment process. This delegation allows creditors to focus on their core responsibilities, while the debt collection agency efficiently manages the intricacies of ensuring prompt and consistent payments, resulting in a more streamlined and time-effective resolution.
Avoid Needless Legal Action
As debt collectors are seasoned with experience, they can see many different paths to recover your money including court. Court can be the wrong answer when dealing with debtors in financial hardship. After a potentially costly and timely process, the courts may only order the debtor to pay in a payment agreement meaningful to their situation. Debt collection can bypass this process to get the same result for so much less.
Security
Debt collectors also bring a level of expertise to the table that is crucial for navigating the legal and regulatory landscape surrounding debt recovery. With a deep understanding of the relevant laws and regulations, debt collectors can ensure that the payment agreements are not only effective but also tick compliance laws and protect you if an agreement goes south.
If you are having issues with a debtor not making regular instalments, please contact us to see how we can best save you time in your situation.
by Henley RecoveriesAvoid Using Debt Collection
Many businesses avoid using debt collection as they have no use for it. By our existence as a company, you can tell many others cannot avoid needing recovery services. How do they do it?
It may seem counter-intuitive for us to advise how to avoid using our services. However, your efforts to mitigate unpaid accounts relieves time and stress on your end and makes collection efforts more straight forward if needed.
Here are simple things you can do to your current system to mitigate debts in the future.
Prepare
To avoid using debt collection, you need to prepare for the journey your invoice may take. Just like a family outing where you need to bring hats, water bottles, food, a book for kid 1, spare change of clothes for kid 2 as they always get messy, GPS tracker for kid 3 as they always run off…..
There are so many things which could happen to your invoice. As the example above also shows, the more work you have, the more that can happen and the more prepared you may need to be.
This can look like changing your workflow from calls to confirmation in writing. Maybe your next step is written and signed contracts. What about having a scheduled process to follow invoices along their perilous journey…
Process
I am a simple guy, my brain works 1-2-3, cause and effect, what is the next step. We believe to avoid debt collection, your accounts should be similar. For example:
- Due Reminder
- Follow-up #1 X days overdue
- Follow-up #2 X days overdue
- Final Warnings X days overdue
- Action
Having a set template for follow-ups keeps the stress of figuring out how to get your payment away. Doing this keeps the pressure on your debtor and creates the urgency for payment to be made. We find creating an ethical sense of urgency and importance to a debt is one of the best ways to recover debts.
A process cannot be the be-all and end-all as a debt is not always cut-and-dried. Sometimes some finesse is needed.
Propose
So there’s more to your debt than meets the eye. Does your debtor dispute the invoice? In financial hardship? Ceasing communication? Making unfair demands? This may hurt, but sometimes you must swallow up your pride to resolve the situation, whether the principle is correct.
Although it may be difficult, proposing alternative ways to resolve the matter can be the final steps you can take to avoid using debt collection. This step really depends on how willing you are to settle for a lower amount or agreement.
As every situation is different, we can recommend is that all proposals is put in writing. If it’s a settlement, put forward a without prejudice offer to save on costs with 7 days to accept – that kind of thing.
Then what?
Worst case scenario, you are left with us, the collectors.
Thankfully, we are used to the situation never being the same and we are ready to deal with what you have to throw at us. If you are unsure if you have done all you can to chase up an unpaid invoice, give us a call. We will be happy to discuss if you have done everything you can to avoid using debt collection and what we can do to assist.
by Henley RecoveriesBetter Accounts Equals Better Profit
A good business owner is always counting the cost of the work they do. For a builder, this is moving their margin when material costs rise (thanks COVID), for a mechanic, it is quoting for the time the job will likely take, for the accountant it is billing for the time spent working on the books. Despite this, time spent chasing up unpaid invoices isn’t always taken into account and it can really eat into your profit by taking you away from what you do best. Whilst it is a necessary evil, we will let you in on a little secret, better accounts equals better profit. Here is why:
Time Wasted
It is easy to get caught up in perfecting your trade and leaving accounts to themselves. Unfortunately, we live in a world where reminders and follow-ups are needed to get things done. Keeping on top of your invoices and payments, increasing your cash flow will also give you peace of mind, help you sleep at night. That being said, every call, text, email, letter and meeting is a time where you could be either working, earning greater profits, living life or anything else that is not wasting your time and effort.
Despite all the time and money saving you are achieving in your work, the time wasted here can make a large debt in your earnings.
Lack of Accountability
Forgetful clients are one thing, what about the evaders or fighters? Unfortunately they exist, many for very good reasons. Ensuring that they are aware that you are watching all your outstanding debt and incoming payments, makes them more likely to pay. The squeaky wheel gets the grease, so to speak. Even so, following these clients up can be one of the more time consuming processes. Long term outstanding accounts can be the difference between a successful and stressful year.
An example we hear all to often is a small $2k invoice which has had hours upon hours of discussions, meetings and attempts to contact without payment. Unfortunately in some of these cases, the client had no reason to pay immediately as there was no real pressure to do so. Having the correct forms, contracts and plans for these clients is imperative to ensure you are paid.
Some ways to combat this are having the paper work and repercussions set up, like what we assist with in our free protection audit (shameless plug). Being able to legally on-charge admin fees, collection fees, interest and potential legal fees will allow you to be able to hand the matter to debt collectors without having to worry about more time and money wasted.
Lack of Process
So you are a smaller business. Family run? Sole Trader? You may not have or have needed a real process to your accounts management. What steps do you take to ensure you are paid? How can you get better accounts and also get better profit? Some important steps are:
- Credit check prior to engagement
- Quoted works in writing
- Consistent follow-ups for a set period of time
- Firm dates and firm repercussions as a result of prior written agreements
Lack of Time
Especially if you are a smaller business or maybe a larger one with too many invoices to chase up, there is not enough time in the day to recover everything. Most businesses will hire a bookkeeper for a few days a week to cover this. Well done, what a great first step! If you are unsure of what you could do next, our next shameless plug is our Accounts Receivable Process.
Let us handle your accounts for you. Guaranteed, consistent follow-ups, advice and ease of moving those harder cases straight to collection. Have a look at our page here for more info on what this looks like for you and if we can fill the gap in your business. We hope that we can give you a better accounts process so you can have a better profit. Let us take on the stress of collecting your payments so you can continue doing what you do best. Making money.
by Henley RecoveriesCommon Reasons Why Court Won’t Work For You
Some of the most common reasons why court won’t work for you are simple, others are more complex. We want to make sure that if legal action is necessary to recover a debt that you are making a well-informed decision. To help you along, here are some of the reasons we advise against court with out clients.
Not the End of the Road
Let’s take an example from the Victorian Civil and Administrative Tribunal (VCAT). We have a client whose debtor has stated that we can take him to court and he is still not going to pay the $300 owed. VCAT and other tribunals will provide a judgement, but does not end with a physical enforcement of the result. If we take him through VCAT, we will then need to take the matter further to an enforcement hearing.
An enforcement hearing at magistrates court can be costly in terms of payment and time set aside. With solicitor involvement, the matter starts to blow up to the next level. Is it worth it for the $300?
Lack of Information
Some recoveries we do start with a first name, 10k owed and a disconnected phone number. We welcome a challenge but the courts may not look too kindly towards it. Court requires the respondent served the documents so they actually know that there is a case against them. We do skip tracing to find more details on the subject, but sometimes they can be incredibly hard to find. Melbourne Investigations explain the process of skip tracing well in their blog here.
Without a means to take person to court, it can be a fruitless process.
Costly
We hear some horror stories of clients spending 25k to recover 20k. Our court cases are paid upfront prior to moving forward to avoid this. When a case moves forward to the next step like the aforementioned enforcement hearing, things could get out of control. If we can see this being the case, we may advise against court.
Court costs can be recovered to an extent, but sometimes it is hard to count the cost.
Time
Preparing for court can be time consuming, even if you have someone like a collector or solicitor preparing the way for you. For some businesses, it’s not worth chasing $6,000 in court as they would lose this in time spent preparing for court. On the other end, some courts can be slow with 10 month wait times to get the case on the table. Maybe this is too long for you to wait for a solution.
Other Options
Debt collectors like ourselves are always looking for the best way to resolve a case. We try to avoid some of the issues court produces. We avoid costs, time extensions, hassle on your end and any nerves the word ‘court’ might produce. This could be by trying another avenue first like:
- In-House Escalation
- QBCC / DBDRV / Fair Trading
- Credit File Implications
- Statutory Demands
Whatever the situation, we hope we can give you the options forward to recover your debt. This can sometimes mean court is the only option, even if it’s not a good one. Are you confused on what avenues you have? Feel free to contact us on info@henleyrecoveriesgroup.com.au with your situation and our collection agents will be happy to advise on what we can do in your situation. Otherwise, you can submit a debt with us and we will let you know what options should present themselves as we move through collecting your case.
by Henley RecoveriesThe Sooner You Are Paid, The Sooner You Move On
We believe the sooner you are paid, the sooner you move on. Just like it can be hard to attend to an old broken relationship, it can be hard to attend to debts which have left a bad taste in your mouth. We understand that some things need to be dealt with head on to move on while others need more sensitivity for all parties involved.
For some businesses, seeing that debt sitting in the accounts system may bring up similar feeling of dread as seeing your ex-friend at the shops. We are not councillors here at Henley Recoveries Group, but we do know how to get rid of that invoice for you!
Rip Off the Band-Aid!
Remember the band-aid you left on for a week as a kid because of the fear of the pain? It’s time to rip off the band-aid, or I should say, attend to that debt!
Some debts can be time consuming or stressful to deal with. This can be why it’s been left sitting for a few months or maybe a few years.
If this is you, we can assist when you submit a debt with us. We love it when we receive your submission, deal with the situation and come back with full payment without need of your intervention. We do this in cases to make sure no more of your time is wasted is following up the matter. To do this, we need as much info on the matter as possible. This can include:
- Quotes
- Invoices
- Contracts
- Purchase Orders
- Additional Requests
- Text history
- Email Trails
- Description of the situation
Any and all of this can assist us in collecting a debt without you having to re-visit the old band-aid. You can also let us know that you want little to no involvement so we can act in the best way possible. We will work with you to help you move on as easily as possible. This being said, there are sadly some debts which need the attention. When there are legitimate disputes, offers and legal processes involved, we like to work with you to find how you would like us to act in the situation with the evidence that has been involved.
Don The Boxing Gloves
Maybe you are the type who wants full control of chasing up the debt but you lack the extra authority or knowledge. We are also here to assist in this situation. We walk many clients through the proper avenues of collection using the experience of our collectors. For example, your debt may be able to be enforced by multiple avenues such as:
- Credit Default / Mercantile Enquiry / Credit File Implications
- QBCC / DBDRV / Fair Trading
- FEG / ATO / Fair Work
- Statutory Demand / Windup Proceedings
- Process Service
- Garnishee Wages / Caveats / Repo
- Small Claims Tribunals / Local Court / Magistrates etc.
Our aim is always to resolve prior to any action but it always helps to know what will work best in any situation. When we work a case, we always have in mind the future steps to how a case can pan out. We can work with you step by step with how we escalate the matter so you can choose with our own recommendations how you want to deal with the debt.
Armour Up
We cannot stress enough how important preparing for the worst is. Putting armour on your business can help you avoid all the debts which may leave you needing a figurative band-aid. Things such as signed agreements and clauses can mitigate unpaid invoices. As we always market to our clients, we give a FREE AUDIT on your current protection for your business. We give you the materials to protect yourself moving forward so you may hopefully avoid future old band-aids.
Metaphorical language and fluffy words aside, our heart in this industry is to assist your business in running in a way which avoids debts but also knows how to recover unpaid invoices when the worst occurs. We have been engaged to help and collect for many reasons including relief to emotional strain, saving the business’ time, difficult disputes, MIA clients and legal action. Over the years of operation, we have helped many businesses recover their lost earnings or advised them on what went wrong and how to avoid it. We hope we can do the same for you so you can sooner move on.
by Henley RecoveriesCommon Excuses from Non-Payers
As debt collectors, we get many common excuses from non-payers regarding why we shouldn’t be involved. Whether it’s true or not, the fact remains that you have not been paid for your services. It’s our job to nut out the situation to find the best way to get you paid.
I Was Never Told
The first of the common excuses from non-payers is the client who plays unaware. This can range from a client who legitimately has never received an invoice or one who purposely has been evading. The next steps for these cases are simple; they have the invoice now, get it paid. This sometimes can take more effort for those debtors who reply with, “I thought I didn’t owe them because they stopped following me up.”
To avoid having these debtors, we advise that you:
- Collect as many contact points before beginning work.
- Make sure you contact your debtor on every point of contact (within reason) if no response is made.
- If you did work at their premises, you may want to drop by with good intentions. Hand the invoice to them directly to confirm they received it.
- If you can confirm that they received your invoice, be quick to act if invoices go overdue.
- Submitting a debt to a debt collector early will enhance your chances on a successful collection. Remember, if they have previously agreed to it, we may be able to add on our fees. Free debt collection!
I Told Them to be Patient
You told them to pay, they said to wait. Unfortunately, we have had a recent influx of these regarding solar panel installations and similar types of work. It is confusing to hear that a request for the install was made without any money to pay for it. Whether the client intentionally is playing the system or legitimately is having a hard time, there are ways to avoid the issue.
Pre-agreed processes like deposits, progress payments, certification on final payment and late fees can help avoid this type of situations. If financial hardship has come out from nowhere, we encourage our debtors to chip away at the matter with regular payments. Everyone should be able to pay something. A small payment may seem like a joke, but it confirms the debt being owed. It also resets the statute of limitations.
I Stubbed my Toe and Broke 2 Arms
I believe we have heard this one twice now. The problem with both of them is that they weren’t claiming they couldn’t work, they just emailed that they couldn’t access their bank account as they couldn’t move their fingers. Again, they emailed it.
To cover all the more weird reasons, the facts are still the same – money is still owed, they need to get it paid. Most debt collectors will have a multitude of ways which payments can be arranged for all situations. Sometimes being flexible can help, other times calling out a silly situation can result in payment.
I Am Angry So I Will Not Pay A Cent
Yes, but it is still legally owed – are you starting to see the trend? So many of the excuses require a calm voice to confirm they hear the issue before pushing payment. We find sometimes swallowing any pride towards the situation can result in payment, other times, escalating the matter to court. This could make your client realise the gravity of the situation. If not, you now have a legal judgement to show they have misunderstood their position.
Many times when we escalate to court in our debt recovery process, it’s for the reason that the client is misinformed on their position. All that is needed was payment to be made to fix the reason for their anger.
I Dispute The Debt So Take Me To Court.
As debt collectors, this can be a sign of a false debt or someone who has really been hurt by the system. It is in everyone’s best interest to avoid the time and money in preparing for court. We strive to get your debtors to open up about the issues so we can be more of a mediation service. If there is legitimately issues at hand, we work with you to find what is meaningfully owed to get the best outcome for the situation.
There are always ways to address any type of excuse. Sometimes it can be tricky to find the right way to address the situation. We hope that insights into the common excuses from non-payers we get and how we deal with them can help in your own business.