The Australian economy is heavily reliant on businesses collecting the debts they are owed promptly and efficiently. As such, we encourage all business owners to take the necessary steps to ensure that bad debt is escalated for recovery actions.
It is essential to understand that bad debts are not static but instead that they are a dynamic and ever-changing process. As such, businesses need to remain vigilant regarding debt collection and recovery.
We recommend that businesses take the following approach when it comes to bad debt:
1. Monitor debts continuously and identify bad debt as soon as possible.
2. Take immediate steps to contact the debtor and attempt to work out a payment plan or other satisfactory arrangement.
3. Seek advice from a debt collection professional or solicitor.
4. Always keep accurate and up-to-date records of all correspondence with the debtor.
5. Consider engaging a debt collection agency to assist with the recovery process.
6. If necessary, Take legal action, such as issuing a statutory demand or suing the debtor.
It is important to note that recovering bad debt is time-consuming and often complex. As such, businesses must take the necessary steps to identify and escalate bad debt for recovery actions as soon as possible.
By taking the necessary steps to escalate bad debt for recovery actions, businesses can protect their financial standing and collect debts promptly. At Pay Australia, we are dedicated to helping businesses ensure that their debts are collected promptly and effectively, and we are always available to provide advice and assistance when necessary.