What commercial issues do I need to consider when collecting a debt?

• If the debt is less than $10,000 then you need to be realistic. If you need help from a lawyer then legal and court costs will add up quickly. Sometimes the costs of recovery may amount to more than the debt.
• Remember that court cases can be extremely stressful and they take time and effort. It is a good idea to take these factors into account as well as the money owed when deciding what steps to take.
• Most businesses do not want bad debts and want to resolve debt recovery issues quickly and efficiently. To do this they need to ensure they have processes in place that minimise the risk of bad debts and effectively recovery money when required.
• A good way to avoid the extra costs and time spent chasing debts is to have clear procedures in place when making a sale or offering a service. This includes having template letters, contract documents and other legal documents that make everything clear to both parties.
• If you do need to recover a debt then remember to always maintain a professional approach. It is also a good idea to review your procedures to see what is working well and what can be improved.

• While you do have a right to pursue debts through the courts remember that you are also required to comply with consumer protection laws.
• As problems arise ask yourself what can be learnt from this incident and what could be put in place to avoid the situation arising in the future.