If you believe you are owed a debt for goods or services supplied as a result of providing credit or if you are suffering from slow-paying debtors, please take a moment to consider the following information.

The supply of credit to consumers and businesses continues to grow at an ever increasing pace. Most credit originators take careful steps to ensure that the quality of credit risk is minimised but it is an inevitable function of providing credit that some accounts for any number of reasons will become delinquent or seriously distressed.

Businesses and credit providers have a legal right to recover monies that are fairly owed to them. Debtors too have a legal responsibility to pay their debts.

Various government bodies and authorities oversee and regulate conduct as it relates to the provision of credit and the recovery of debts. The ACCC, ASIC, and the Office of Fair Trade among others have in place acts and guidelines that govern and describe acceptable conduct by the parties involved.

If you would like to learn more about these guidelines Click here to download a copy of the ACCC-ASIC PDF, Debt Collection Guideline for Collectors and Creditors.

The cost of slow paying debtors: It is commonly understood that at only 60 days past due a sale has lost approximately 10% of its original value. That is, if the original sale had a 10% profit, the sale is now at break-even. If payment occurs at 180 days past due this same sale would incur a loss of approximately 23%. Also, it is unlikely that the original credit provider will be able to collect the debt through in-house techniques.

Similarly, when companies find themselves consistently paying their creditors faster than they are paid by their debtors they are in effect funding their debtors. Figures vary among industries but some benchmarking data shows that at mid level performance, average debtor days are 55 and average creditor days 29.

Benchmarking also shows that the best performing companies have about 35 average debtor days and 52 average creditor days.

The cost of delinquent payments by customers and consumers places tremendous burdens on business. The interest payed on an overdraft or lost in the business account, administration and wage costs from in-house recovery attempts, and opportunity costs to the business from lost time and working capital all contribute to reduced profits.

The recovery of delinquent accounts and bad debts as well as providing associated professional credit management services is Collection World Group's core business function.

By collecting money owed to our clients and/or providing them with professional credit management services, we help them increase net profit, improve and better regulate cash flow, reduce operating expenses, repair or improve their customers' payment experience and concentrate on their own core business activities. Our collection services also eliminate what is, for some clients, an unpleasant or awkward aspect of their business activities.

If you are experiencing ongoing slow paying debtors or have delinquent or written off debts please contact us today. With our collections services we charge fees only on monies recovered. Our services are professional, cost-effective and extremely easy to get started - just give us a call or send us an email.