Nowadays, entrepreneurs count every penny. Therefore, it is not surprising that when they consider the use of any company, the first question asked is: how much does it cost? Of course, the issue of the price should not be the only criterion, which was painfully learnt by the entities supervising the construction of the Polish motorways, yet it should be always analysed well and assessed in relation to the elements of the purchased service. So, how much does debt collection cost? What do we actually pay for?
The standard on the Polish market is success fee – a commission on the recovered amounts. It is a very fair transaction – the company pays solely for actual effects. And the debt collection service is in full scope, on the amicable, court or enforcement stage. Sometimes also field actions, which are time-consuming and laborious, may also be needed. In such case, it is possible to agree on a lump sum for a trip or inclusion of costs in the success fee. And what is the commission of the debt collector? There is no one determined amount, which is also good news for a SME entrepreneur. It is obvious that every company has different needs and does not need all elements of the offer. The individually tailored service package means an individual price, adjusted to the capabilities of the given company. It is not good to assume right away that ‘I cannot afford it’. The benefits from the purchased service, even the basic one, e.g. telephone debt collection with monitoring of receivables, often improve the cash flow to such extent that it is profitable for the company.
Therefore, the commission depends on the service package selected by the company but not only on it. Another aspect is the degree of ageing of receivables – the ‘fresher’ they are, the lower the margin is. The lowest commissions are already on the level of bottom several percent. Therefore, it is good to look carefully at the invoices not paid by the business partners and to take debt collection actions in proper time. Good rates will also be obtained by loyal clients – long-term cooperation with a professional and flexible debt collector is profitable for various reasons, also due to the possibility of flexible adjustment of the service in case of dynamically changing situation in the company. We will pay the most for the receivables that seem already non-recoverable to us – the invoices, the payment terms of which expired months ago, or the ones on the stage of enforcement proceedings or after them. But if we treat them as lost anyway, maybe it would be good to give a chance to the debt collector? In such case, the commission in the amount of several dozen percent will not be so severe for us since if the debt collector manages to collect the debt, we will pay for the debt collection activities with the money, for the recovery of which we did not hope anyway and additionally, some part of the overdue means will go to the company account anyway.
Published on: 9 November 2016