So, your emails and phone calls are getting you nowhere? It’s time to outsource your debt collection services to a professional. But which one should you hire – a debt collection agency or a lawyer? Here are a few tips to help you hire the correct professional to do the job.
Factors to Consider in Hiring the Right Professional:
- Area of Specialty
If you’re choosing either a debt collector or a law firm, make sure that the collector that you choose has a specialty in that area.
- Speed of Debt Recovery
Find out exactly how fast you need the money. If you are looking at cash flow and you want your money fast, it is better to ask assistance from a debt collector than go to a law firm. Keep in mind that legal processes take longer time. Debt collectors operate on a commission basis and are incentivized to get the money in. They don’t get paid unless the debtors pay their debts, so they are motivated to collect your debts faster.
- Cost Effectiveness: Commission fee vs. Legal fee
You need to look at the commission you will pay to a debt collector as opposed to the legal fees you will pay to a solicitor. With debt collectors, the commission fee depends on the size of the debt. So, if clients have a very large debt, you might want to consider the legal option.
ADC Legal is in partnership with Debt Recoveries Australia (DRA), a debt collection agency that can provide litigation services across Australia and New Zealand. DRA collects debts from companies of all sizes – small and large. DRA can maximise recoveries and speed of collection while being responsive to our client’s individual needs.
|About the Author
Adam Stewart is a Debt Collection Expert and owner of ADC Legal Litigation Lawyers, a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at firstname.lastname@example.org or call 1300 799 820. Talk to us about your litigation or dispute concerns via Skype at adclegal.