Most small to medium enterprises do not have the financial resources to sustain an in-house credit department. This means that collecting outstanding debt can become a real problem for many businesses, particularly in instances where debtors are stubborn and unwilling to pay, or have gone missing altogether by changing their address and/or telephone numbers.
If your business is struggling to collect debt from debtors, it would be a wise decision to employ a professional debt recovery company such as PRS & Associates instead of dedicating precious time and resources by going about trying to collect the outstanding debt yourself, or hiring an attorney to do so for you. In essence, PRS & Associates will act as an extension of your business in order to help you save both time and money.
The team at PRS & Associates will do our very best to help our clients avoid taking expensive legal action against their debtors. In order to achieve this goal, we will make use of any and all feasible collection methods and tactics to retrieve debt from debtors, recommending legal action only once we have exhausted all other debt collection options and deem amicable payment to be impossible.
Our process of debt recovery on behalf of our clients is as follows:
Step 1: Handovers and gathering information from our clients
As soon as a client commissions us to provide them with our services, we will request that they provide us with any and all documentation related to the debtor. Receipt of all handovers are acknowledged by way of facsimile, email or return post.
Step 2: Gathering information on, or tracking and tracing the debtor
After we have received all the information we need from our client, we will proceed to gather further information on the debtor involved. In the case where a debtor has “gone missing”, we will take the necessary steps to track and trace them using the latest cross referencing and analytical technology, at no extra cost to you.
Step 3: Contacting the debtor and obtaining payment commitment
After we have gathered all the necessary information on the debtor, we will proceed to contact them via fax, mail, email or phone to arrange payment. Debtors are informed of their pending listing on the National Credit Bureau. After we have received a commitment towards payment, we will ensure that payment materialises. If a debtor refuses to pay due to an ongoing dispute, we will endeavour to resolve the dispute with our client.
If a debtor fails to cooperate, we will proceed to take all the necessary pre-legal steps to ensure payment follows.
Compensation for our services is regulated by Annexure B of the Regulations to the Debt Collector’s Act (Act 114 of 1998), click here to view this fee structure. Amounts quoted in Annexure B exclude VAT, accordingly we are required to add VAT to our charges since we are VAT-registered. These fees are added to a debtors’ outstanding amount as and when incurred, making it very important to resolve disputes soonest to avoid additional collection fees. We encourage debtors to enter into fixed payment arrangements where possible to ensure such fees are kept to a minimum. Should you be interested in establishing such an arrangement with us, please click here.
Step 4: Legal action
If a debtor still refuses to pay after we have exhausted all pre-legal collection options, we will proceed to take legal action against the debtor. Our clients can be rest assured that we will never take legal action without discussing the cost with them and gaining their permission.
Payment received from our clients’ debtors will be remitted from our audited Trust Account on a monthly basis on payments received within the collection period of the previous month.
Because we always aim to keep our clients updated, we will provide them with a detailed payover report as well as a detailed status report of all matters handed to us for collection, on a monthly basis.
Our commission is offset against payments due to our clients on Direct Payments, however, if there are no payments to offset the commission, an invoice will be sent separately.
We operate on a "no collection no charge" basis, which means that if we fail to collect your debt, you will not have to compensate us.
Our commission rates are negotiable.
We will gladly supply our prospective with references on request.
Because we understand that it is easier to keep an existing customer than to obtain a new one, we go about collecting debt in such a way that we preserve customer relations for our clients. In order to do this, we treat your debtor customers with the necessary respect by using responsible debt collecting methods.