- Q: Debt Collection
We provide a fast and effective debt collection solution for businesses in NSW.
Our proven techniques and methods have been developed by experienced commercial litigation lawyers. We aim to collect every debt without the need for Court proceedings. Most debts are collected within 7-14 days.
Our techniques work fast, that's why we also buy debts.
Getting paid for a Debt that you considered was uncollectable is like getting something for nothing. And because it was or was going to be written off anyway IT'S ALL PROFIT. Don't give up on your bad debt. Fast Track it instead.
Our Debt Collection service also includes advice in relation to dealing with:
- payment plan offers,
- insolvent debtors,
- disputed debts, and
- future debt minimisation.
We also have the advantage our utilising our exclusive online Payment Plan Offer portal to quickly make legally enforceable Fast Track Payment Agreements between our clients and their debtors where a debtor is unable to pay a debt by a single lump sum.
- Q: Debt Collection in the Building & Construction Industry
Unique laws apply to the building and construction industry in most States of Australia. These laws are aimed at ensuring that builders, contractors, consultants and suppliers are able to promptly recover payments, thereby creating security for payment. In New South Wales the security of payment regime is governed by the Building & Construction Industry Security of Payment Act 1999 (NSW).
Because we employ experienced Building Dispute Lawyers, we are uniquely positioned to assess your rights to use the security of payment regime to recover your debts. If you are a builder, contractor, consultant or suppliers in the building industry we will evaluate your business' rights under these laws and, if possible, utilise the security of payment regime to recover your debts promptly.
All rights under the security of payment laws in NSW flow from the issue of a valid Payment Claim. If you own or operate a business in the building industry in NSW and are not 100% sure that your invoices are valid Payment Claims we recommend that you follow the link below to obtain a Free Payment Claim Report for your business.
- Q: Interest Collection
Our Debt Collection service includes an appraisal of your right to recover interest in relation to a debt.
If you have a right to payment of interest we will vigorously pursue payment of that interest on your behalf. Even bank's don't give credit without interest, so why should you? However, unless you have a Contract that includes a right to interest you can only recover interest if:
- You commence Court proceedings and the debt is greater than $1,000 (the relevant interest rate is prescribed), or
- The debtor agrees to pay interest, for example, as a result of the making of a Fast Track Payment Agreement.
If you don't already have a contractual right to interest and your debtor wants time to pay or wants to pay by instalments, this is an opportunity to negotiate the additional payment of interest. Ask us about our copyright protected Fast Track Payment Agreement. It will ensure your rights to past and future interest at a healthy commercial rate.
- Q: Recovery of Debt Collection Costs
Our Debt Collection service includes an appraisal of your right to recover debt collection costs incurred in relation to a debt.
If you have a right to recovery of debt collection expenses we will vigorously pursue your debtor for payment of those expenses on your behalf. However, unless you have a Contract that includes a right to recover debt collection costs you can only recover these costs if:
- You commence Court proceedings, in which case only the prescribed legal costs or costs ordered by the Court are recoverable, or
- The debtor agrees to pay debt collection costs, for example, as a result of the making of a Fast Track Payment Agreement.
If you don't already have a contractual right to recover debt collection costs and your debtor wants time to pay or wants to pay by instalments, this is an opportunity to negotiate the additional right to recover these costs. Ask us about our Fast Track Payment Agreements. It will ensure your rights to future debt collection costs.
- Q: Fast Track Payment Agreements
Fast Track Debt Collection offers its clients use of our copyright protected Fast Track Payment Agreement.
We utilise the latest technologies to make the most of every opportunity on behalf of our clients. If at debtor asks for time to pay we will direct them to submit a payment plan offer via our exclusve online Payment Plan Offer portal. As result the offer will now be received with a pre-acceptance by the debtor (and if the debtor is a company, its director as guarantor) of the Fast Track Payment Agreement Terms. If the proposal is acceptable, all you have to do is let us know. When we notify the debtor of your acceptance a legally enforceable payment agreement incorporating the Fast Track Payment Agreement Terms will be made.
The benefits of making a Fast Track Payment Agreement include:
- A written acknowledgement by the debtor of liability for the debt and release from any claims that the debtor may have against your business. If legal action becomes necessary in future, the debt cannot then be disputed. This will mean that significant legal costs involved in defended Court proceedings can be avoided.
- Additional security for payment of the debt. Whether in the form of thrid party guarantees and/or security over real proeprty or other assets, having additional security for payment will mean that you are more likely to be paid in full if in future the debor becomes a bankrupty or goes into liquidation.
- A right to future interest at an appropriate commercial rate. This clause will be significant if you did not have a prior contractual right to recover interest.
- A right to recover future debt collection costs, especially where you may not currently have any right to recover debt collection costs.
When a debt is subject to a Fast Track Payment Agreement the chance of not recovering payment or incidental costs is vastly reduced. Debts subject to a Fast Track Payment Agreement can also be listed for sale on the FTDX and sold for an upfront payment, giving you another opportunity to collect payment now despite a debtor's inability to pay otherwise then by instalments.
- Q: Debt Buying
Fast Track Debt Collection wants to buy your business' bad debts.
Unlike most debt collectors, we buy individual and multiple business related debts provided:
- The debt is at least $1,000.00,
- The debt is not more than five (5) years old, and
- The only debtor is not a bankrupt (or company in liquidation).
If you have a debt that you have given up on why not cash in? Wouldn't you rather get something than nothing? Just because you can't locate a debtor or have written off a debt as a bad debt for accounting purposes does not mean we won't pay you cash for it. Even if other debt collectors have tried and failed to collect we want to buy your debt. What bad debts does your business have that are less than five (5) years?
- Q: Investigations & Skip Tracing
Skip Tracing is the investigation and location of missing persons. Our debt collectors are licensed to carry out investigations relating to:
- the location of missing ('skipped') persons, and
- the business and personal affairs of a person or company.
Just because you can't locate a debtor or find information in relation to their affairs, employment, assets or businesses doesn't mean that we can't. Investigation of persons is a skill developed over time. For the best results you need experienced debt collectors to carry out investigations on your behalf. Put us to the test. You will be amazed at what we can find out.
In most cases our investigation services will be provided in connection with the collection of a debt and will not result in any additional fees. We will always obtain your prior agreement to any charge for investigation services.
- Q: Credit Management
How well do you know the customers that you offer goods or services to on credit? Even if you are obtaining a director's guarantee from a company, what do you know about that director and their assets?
Assessing the credit risk associated with a new or existing customer before extending credit should be a preliminary step in the negotiating of every contract your business makes. More sales does not mean more profits, if you do not collect payment.
Download our free Guide, '6 Steps to Improving Cash Flow - A Guide to Better Credit Management' for our detailed recommendations in relation to Credit Management.
We recommend that businesses use Credit Applicaitons (or separate Consent Forms) to enable them to obtain Credit Reports in relation to prospective customers to help them make an informed decision in relation to:
- Whether you should enter into the Contract to supply the goods or services on credit, or
- The terms upon which you might be prepared to supply goods or services on credit to the customer, including in relation to payment of a deposit.
We also assist clients make good credit decisions by offering a range of searches including:
- Company Searches (Historical/Current) - Gives the names of the current and former directors and shareholders, the current and former business address and registered address as well as details of existing secured creditors of the Company.
- Business Name Searches - Gives the names of the persons or companies carrying on business under a registered Business Name.
- Personal Searches - Reveals companies in which the person is or has been a director, secretary or shareholder.
- Title Searches - Shows who is the owner of a particular property and whether the property is Mortgaged.
- Owner Name Searches - Reveals properties in relation to which the person is or was an owner.
- Q: Effective Business Contract Document Packages
Making effective everyday business contracts is often the difference between getting paid and not getting paid.
Consider this, if you are making a 10% profit on sales, an uncollected debt of $5,000.00 cancels out sales (or work performed) worth $50,000.00.
How important is cash flow to your business? Can you afford to take the risk of not being able to recover payment?
- How effective are the everyday business contracts that you make?
- Do you make contracts incorporating standard form Terms & Conditions of Trade?
- Do you obtain personal guarantees or real property security that can be enforced? If not, you will probably not recover the money if your Customer becomes insolvent.
- Do you have clauses creating security over personal property (eg retention of title) and tailored specifcially to the new Personal Property Securities Act? If not, any security you did have over stock or equipment will be lost if the Customer becomes a bankrupt or goes into liquidation.
- Will you be able to recover your enforcement costs (including our commissions) if you need to take action to recover a debt? If not, you will be left out of pocket.
Most people have a story about someone they know who had a Customer that went in to liquidation or bankruptcy and they only recovered a few cents in the dollar or nothing at all. Too many businesses put themselves at risk of this happening to them.
Don't wait until you get stung by another debtor before getting your contract documents and procedures finally sorted out.
- Q: Litigation Management
We aim to collect every debt without the need for Court proceedings. We know that our clients do not want to get involved in potentially drawn out and expensive Court litigation. Nor do we.
If a genuine dispute is raised by a debtor we advocate clients taking a commercial approach and are able to facilitate free legal advice through the experienced Commercial Litigation Lawyers within our integrated law firm to assist clients to make a fully informed and educated decision in relation to any compromise that may be appropriate.
If a dispute is not genuine or has no merits, or if a debtor is being unreasonable, such that the debt can't be collected without first obtaining a Court Judgment, we will manage the litigation process on your behalf whether you authorise us to engage our integrated law firm, Roberts Legal, or any other law firm in relation to the Court proceedings.
In most cases when we manage the litigation process we can prepare, file and serve a Statement of Claim in the Court quickly and efficiently and at a fixed cost which our Lawyers will carry for 90 days. This means that in most cases our Lawyers will be paid from the monies collected from your debtor even if Court proceedings are necessary.
Regardless of the circumstances, we will never commence Court proceedings without consulting you and obtaining your express instructions to do so.
- Q: Judgment Enforcement
In New South Wales a Judgment can be enforced for up to 12 years after the Judgment was entered.
If you have obtained a Judgment against a debtor but given up on collecting payment, give it to us to collect for you. Even if another debt collector or law firm has tried to enforce the Judgment we are willing and ready to take it on.
Alternatively, contact us to negotatie the sale of your Judgment debt to us today.
- Q: Final Notice - Overdue Account Letter Template
An effective Overdue Account Letter is an essential component of every businesss Debtor Management Procedures.
Follow this link to access our Free Final Notice Overdue Account Letter Templates.
- Q: What is the Net Present Value of a Listed Debt?
Most Listed Debts are debts that have been converted to a future income stream. That means that the creditor has agreed to allow the debtor to pay off the debt by regular instalments at commercial rate of interest and on other agreed terms, normally, as set out in a Fast Track Payment Agreement.
The Net Present Value of a Listed Debt is the agreed value between the seller and a buyer for sale of that future income stream for a lump sum now. The Net Present Value takes into account the rate of return that the buyer requires on their money over the term of the Payment Agreement for the Listed Debt, which rate may vary depending on the Debt Score for the debt. In most cases, the rate of return offered (ie 'the Discount Rate') will be displayed for the Buy Now Price on the FTDX.
- Q: What is a Debt Score?
Listed Debts are rated for the degree of risk associated with future collection and given a score from 1 to 5, 1 indicating that there is unlikely to be problem collecting payment of the debt and 5 indicating that there is a reasonably forseeable risk of the future insolvency of the debtor. For example, a Listed Debt owed by debtor who owns land and has entered into a Fast Track Payment Agreement will likely have a Debt Score of 1.
The market price for a Listed Debt will vary depending on the terms of any existing payment plan and the Debt Score.
Disclaimer: FTDX Members should rely on their own investigations and/or obtain independent financial and legal advice when making an offer to buy a Listed Debt.
- Q: How is a Debt Score determined?
We are currently reviewing the method of determining Debt Scores to ensure the greatest level of transparency for FTDX Members. Please check back soon.