When should I refer my debt to Target Collections?

Accounts can be labelled delinquent once they have gone past the date set in your payment terms - normally 30 days.  Once accounts go past 90 days, the chance of non-collection rises exponentially. It's our view that, once an account has exceeded 30 days it should be referred for collection.  At this stage there is a very high chance that, given proper management, the debt will be collected in full.

Remember that unless you are collecting debts promptly, you are likely paying GST on uncollected debts which will in turn have an adverse effect on your own cash flow.  You're also sending a clear message to your customers that you find it acceptable for your debts not to be paid on time.

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 might find that it's just too late to do anything about it.

Generally, if a debtor is experiencing cash flow problems, they usually pay those debts that are placed in the hands of a mercantile agency first.

How much does a recovery cost?

For debts under $500 we charge a flat fee of $50.
For debts between $500 and $10,000 we charge a 15% commission.
For debts between $10,000 and $40,000 we charge a 12.5% commission.
For debts over $40,000 we charge a 10% commission.

If further action is required (e.g. legal proceedings, engaging our investigators) we will always inform you of the costs and seek your instructions before initiating any action.  We guarantee that we will never charge any surprise fees.

What success rate can I expect from Target Collections?

Every debt is different and there are a number of factors that need to be taken into consideration, but if the debt is referred to us in a  timely manner and you are willing to work with us, it's very rare that we are unable to recover a debt.

If we believe that a positive outcome is unlikely, we will tell you before you we initiate action in order to save you money and minimise the impact of unrecoverable debts.

Why should I use a collection agency instead of placing the matter in the hands of my Solicitor?

Because litigation is expensive and time-consuming it should be your last resort.  The staff at Target Collections are trained to resolve debts without resorting to legal action if at all possible.  We also understand that sometimes litigation can't be avoided, however the unique structure of our company allows us to generate litigation in-house if it becomes necessary.

How long does the process take?

Typically, we aim to resolve debts within 21 days of receiving them.  However, this may take longer if the debtor is experiencing financial hardship or further action is required.

We typically remit paid debts electronically at the end of each month, however we are able to do this sooner is your circumstances necessitate it.

What documentation do i need to provide?

All you need to do is complete and sign our service agreement which can be obtained by requesting a collection pack or contacting us.  Simply return it to us with the details of your debt(s) and we'll get to work immediately!  If you have any invoices or documents that substantiate the debt, these are always appreciated and will be required if legal action becomes necessary.

Some of my outstanding debtors are long term valued customers.  will my relationship with them be damaged?

Our staff are skilled in mediation and conciliation techniques.  We pride ourselves on our ability to demonstrate the empathy required to achieve a positive outcome while at the same time protecting the relationship you have with your customers.