Questions? Answers!

Q. What success rate can I expect from Target Collections.
A. The longer a debt is allowed to remain outstanding, the greater the chance that it will remain uncollected. In our experience it pays to initiate action as soon as possible, otherwise you may find that you are too late. If a debtor is experiencing cash flow problems, they usually pay those debts that are placed in the hands of a mercantile agency first

Q. What action would Target Collections undertake to collect outstanding amounts?
A. The first approach is made by letter which informs the debtor that we are a Mercantile Agency and that we have taken over management of their account with you. This letter is a Final Demand for payment which requires them to make full payment by return post. If there is no response to this the debtor is contacted by phone and politely yet firmly informed that it is in their own interests to pay, as this will save them additional costs and may damage  their credit worthiness. If they cannot be contacted by telephone then one of our representatives will schedule a field call in a final bid to resolve the debt. If payment or an agreed payment schedule is not agreed at this stage we would usually follow through to legal action and enforcement.

Q. Some of my outstanding debtors are long time valued customers, will my relationship with them be damaged?
A. At Target Collections all of our operators are skilled in mediation and conciliation techniques. Our staff are trained to demonstrate the empathy required to achieve a positive outcome while at the same time protecting the relationship you have with your customers. One thing to remember is that in many cases the reason that your customers are lagging in their payments is that they have not instituted the sound debt management practices that you are now considering.

Q. Why should I use a collection agency instead of placing the matter
in the hands of my Solicitor?
A. Because of the hassle and cost involved, litigation should be your last resort. The personnel at Target Collections are trained to avoid legal action if possible, however the unique structure of our company allows us to generate litigation in-house if it becomes necessary. Remember you will never be asked to pay for any solicitor costs that is instituted in the collection of your debtor matters. We may however incur agency fees as approved by you.

Q. What will it cost me if Target Collections cannot collect the debt?
A. If the debt cannot be collected you will be charged no fee whatsoever.

Q. At what stage should a debt be passed on to Target Collections?
A. Accounts can be labelled delinquent once they have gone past the date set in your payment terms, this is normally 30 days. It is a fact that once accounts go past 90 days then the chance of non-collection rises exponentially, it is the view of Target Collections that as soon as accounts reach 60 days overdue they should be assessed for passing over for collection. At this stage there is a very high chance that given firm management, the debt will be collected in full. Remember that unless you are collecting debts promptly you are probably paying GST on uncollected debts which will in turn have an adverse effect on your own cash flow.

Q. What documentation do I need to provide to initiate collection of outstanding amounts?
A. All you need to do is complete our Service Agreement it is easy to obtain by downloading from this web-site (See Take Action Now). Simply complete it in full and return the Service Agreement by fax or post with the debtor details and we will initiate action immediately. If you have any problems with the documentation you need only telephone one of our trained consultants on 03 9672 2686 and they will assist you to complete the necessary information.

Q. How long does the process take?
A. Usually a maximum of 21 days, however many debts are resolved much sooner. We will normally remit the money to you by electronic transfer on a monthly basis, however if your requirements are more urgent we will be happy to comply with your needs on this matter.