You can entrust your receivables to an attorney at law or to a debt collector. The methods differ and the costs vary as well.\u00a0 Hence, how do you choose between those two?<\/p>\n\n\n\n
Professional\u00a0credit management<\/a>\u00a0includes an appropriate and systematic follow up of invoices due by your clients and the timely issuing of\u00a0reminders<\/a>.\u00a0 If this doesn\u2019t work, you better appoint a third party to assist you.\u00a0 You have probably a few (5%?) strategic clients on which you should focus yourself but the remainder (95%) is better outsourced. Your collection partner is specialized in such matters and has the tools to book success in a cost effective and timely manner.<\/p>\n\n\n\n Choosing a collection partner is basically similar as to any supplier selection: select at least three (based on recommendations, internet or other methods).\u00a0\u00a0 Make a strengths-weaknesses table. Contact them and meet them so that they explain their methods to you. \u00a0The key aspects of debt collection are the success ratio, the administration burden, and your image.<\/p>\n\n\n\n The only way to assess a debt collection activity is to compare the face value of your receivables (the total of the invoices you entrust) with your net back (the amount collected minus the costs of debt collection).\u00a0 You can refine this by entering an element of time: collected after 1 month, 2 months, etc. and put this in a table (entrusted in Jan 2017, collected after 1, 2, etc. months; entrusted in Feb 2017, collected after 1, 2, etc. months).<\/p>\n\n\n\n All debt collection professionals claim excellent success ratio. Ask existing clients as they will know better.<\/p>\n\n\n\n Transmission of claims and reporting must be fluent.\u00a0 No need to add administration costs on the cost of unpaid debts. Watch the way money is paid back to you: is it systematic and monthly, is it clear as to what is paid to you for which of your debts?\u00a0 Do you get a report in case of failure so you can amortize the item in your books and get VAT back?<\/p>\n\n\n\n A happy customer will inform another person about you from time to time. An unhappy customer will spread his grief as much as he can. Aggressive debt collection is less effective in terms of success ratio but adds costs in terms of marketing and reputation.<\/p>\n\n\n\n A debt collector works usually on a\u00a0no-cure-no-charge<\/a>\u00a0basis.\u00a0 TCM does so. This entails that you don\u2019t pay for fruitless actions. TCM will charge you a percentage of the money actually collected. This percentage is agreed in advance (before we start our collection efforts, and per contract) and varies according to the age of the debt when entrusted and the location of the debtor (BE, Europe, Elsewhere).<\/p>\n\n\n\n The debt collector avoids courts because it is slow and expensive. He is skilled and also trained to establish a positive communication with your debtor and to follow up with him until payment. Naturally, debt collectors have in-house lawyers as the legal aspect of a claim is important. But the decisive skill in debt collection is constructive communication.\u00a0 It is efficient (success ratio) and doesn\u2019t impair your image.<\/p>\n\n\n\n At TCM, less than 1% of the claims need court action. That is when the debtor won\u2019t pay through amicable efforts and the debtor seems solvent and the claim is adequately proven. That means that you don\u2019t need to pay for obtaining a court order that you won\u2019t be able to get executed.<\/p>\n\n\n\n Attorneys at law charge on a combination of an hourly rate, a fixed fee and a result basis. Besides, they charge for costs. In Belgium, it is legally forbidden for an attorney at law to work on a no-cure-no-charge basis.\u00a0 When entrusting a matter to an attorney, ask a written explanation on their cost structure.<\/p>\n\n\n\n Attorneys at law are, by education, prone to go to courts. Whilst courts are inevitable for some claims, they can be avoided in most cases. Courts entail also the use of bailiffs and costs are added accordingly. Court costs are never fully predictable. Let alone because the other party can appeal or because execution can get complex. Out of court is cheaper, faster and better for your relationship with your client (the debtor).<\/p>\n\n\n\n Go to Attorneys at law for claims that you can\u2019t solve amicably and where the debtor is solvent.\u00a0 They are then the only solution.<\/p>\n\n\n\n Some Belgian attorneys have partnered with bailiffs and offer a \u201cno cure no fee full service\u201d. This is illegal, as is \u201cstrong arm debt collection\u201d. Illegal methods are expensive in the long term!<\/p>\n\n\n\n Recovering overdue debts is always expensive. These costs can be limited through an adequate choice. Debt collectors will handle 99% of your claims out of courts, amicably and reputation safely, in a cost effective and cost predictable way and in a timely manner. For the remaining 1%, courts are inevitable and the debt collector will assist you for that part too if you wish.<\/p>\n\n\n\n You wish more details on what we can do for you?\u00a0 Check our\u00a0website<\/a>\u00a0contact form or\u00a0mail<\/a>\u00a0us!<\/p>\n\n\n\n You can entrust your receivables to an attorney at law or to a debt collector. The methods differ and the costs vary as well.\u00a0 Hence, how do you choose between those two?<\/p>\n\n\n\n Professional\u00a0credit management<\/a>\u00a0includes an appropriate and systematic follow up of invoices due by your clients and the timely issuing of\u00a0reminders<\/a>.\u00a0 If this doesn\u2019t work, you better appoint a third party to assist you.\u00a0 You have probably a few (5%?) strategic clients on which you should focus yourself but the remainder (95%) is better outsourced. Your collection partner is specialized in such matters and has the tools to book success in a cost effective and timely manner.<\/p>\n\n\n\n Choosing a collection partner is basically similar as to any supplier selection: select at least three (based on recommendations, internet or other methods).\u00a0\u00a0 Make a strengths-weaknesses table. Contact them and meet them so that they explain their methods to you. \u00a0The key aspects of debt collection are the success ratio, the administration burden, and your image.<\/p>\n\n\n\n The only way to assess a debt collection activity is to compare the face value of your receivables (the total of the invoices you entrust) with your net back (the amount collected minus the costs of debt collection).\u00a0 You can refine this by entering an element of time: collected after 1 month, 2 months, etc. and put this in a table (entrusted in Jan 2017, collected after 1, 2, etc. months; entrusted in Feb 2017, collected after 1, 2, etc. months).<\/p>\n\n\n\n All debt collection professionals claim excellent success ratio. Ask existing clients as they will know better.<\/p>\n\n\n\n Transmission of claims and reporting must be fluent.\u00a0 No need to add administration costs on the cost of unpaid debts. Watch the way money is paid back to you: is it systematic and monthly, is it clear as to what is paid to you for which of your debts?\u00a0 Do you get a report in case of failure so you can amortize the item in your books and get VAT back?<\/p>\n\n\n\n A happy customer will inform another person about you from time to time. An unhappy customer will spread his grief as much as he can. Aggressive debt collection is less effective in terms of success ratio but adds costs in terms of marketing and reputation.<\/p>\n\n\n\n A debt collector works usually on a\u00a0no-cure-no-charge<\/a>\u00a0basis.\u00a0 TCM does so. This entails that you don\u2019t pay for fruitless actions. TCM will charge you a percentage of the money actually collected. This percentage is agreed in advance (before we start our collection efforts, and per contract) and varies according to the age of the debt when entrusted and the location of the debtor (BE, Europe, Elsewhere).<\/p>\n\n\n\n The debt collector avoids courts because it is slow and expensive. He is skilled and also trained to establish a positive communication with your debtor and to follow up with him until payment. Naturally, debt collectors have in-house lawyers as the legal aspect of a claim is important. But the decisive skill in debt collection is constructive communication.\u00a0 It is efficient (success ratio) and doesn\u2019t impair your image.<\/p>\n\n\n\n At TCM, less than 1% of the claims need court action. That is when the debtor won\u2019t pay through amicable efforts and the debtor seems solvent and the claim is adequately proven. That means that you don\u2019t need to pay for obtaining a court order that you won\u2019t be able to get executed.<\/p>\n\n\n\n Attorneys at law charge on a combination of an hourly rate, a fixed fee and a result basis. Besides, they charge for costs. In Belgium, it is legally forbidden for an attorney at law to work on a no-cure-no-charge basis.\u00a0 When entrusting a matter to an attorney, ask a written explanation on their cost structure.<\/p>\n\n\n\n Attorneys at law are, by education, prone to go to courts. Whilst courts are inevitable for some claims, they can be avoided in most cases. Courts entail also the use of bailiffs and costs are added accordingly. Court costs are never fully predictable. Let alone because the other party can appeal or because execution can get complex. Out of court is cheaper, faster and better for your relationship with your client (the debtor).<\/p>\n\n\n\n Go to Attorneys at law for claims that you can\u2019t solve amicably and where the debtor is solvent.\u00a0 They are then the only solution.<\/p>\n\n\n\n Some Belgian attorneys have partnered with bailiffs and offer a \u201cno cure no fee full service\u201d. This is illegal, as is \u201cstrong arm debt collection\u201d. Illegal methods are expensive in the long term!<\/p>\n\n\n\n Recovering overdue debts is always expensive. These costs can be limited through an adequate choice. Debt collectors will handle 99% of your claims out of courts, amicably and reputation safely, in a cost effective and cost predictable way and in a timely manner. For the remaining 1%, courts are inevitable and the debt collector will assist you for that part too if you wish.<\/p>\n\n\n\n You wish more details on what we can do for you?\u00a0 Check our\u00a0website<\/a>\u00a0contact form or\u00a0mail<\/a>\u00a0us!<\/p>\n\n\n\n Attorney at law or debt collector? Costs of debt collection You can entrust your receivables to an attorney at law or to a debt collector. The methods differ and the costs vary as well.\u00a0 Hence, how do you choose between those two? Appointing a third party Professional\u00a0credit management\u00a0includes an appropriate and systematic follow up of […]<\/p>\n","protected":false},"author":11,"featured_media":15556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":["post-70997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/70997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/comments?post=70997"}],"version-history":[{"count":1,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/70997\/revisions"}],"predecessor-version":[{"id":72251,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/70997\/revisions\/72251"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/media\/15556"}],"wp:attachment":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/media?parent=70997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/categories?post=70997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/tags?post=70997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Success ratio<\/h2>\n\n\n\n
Simple administration<\/h2>\n\n\n\n
Your image and reputation<\/h2>\n\n\n\n
Debt collectors and costs<\/h2>\n\n\n\n
Attorney at law<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
\n\n\n\nAttorney at law or debt collector? Costs of debt collection<\/h1>\n\n\n\n
Appointing a third party<\/h2>\n\n\n\n
Success ratio<\/h2>\n\n\n\n
Simple administration<\/h2>\n\n\n\n
Your image and reputation<\/h2>\n\n\n\n
Debt collectors and costs<\/h2>\n\n\n\n
Attorney at law<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
\n\n\n","protected":false},"excerpt":{"rendered":"