Let us turn your debts into dollars
BCA has for some time been encouraging its members to affect one hundred percent debt recovery. Thus far many businesses
have availed themselves of this process and strongly advocate that the credit granting body in its entirety follow suit.
As long as debtors are informed that they are to be charged, then they are liable for any extra charges.
When a new account is opened, we suggest that a clause similar to the following be inserted in the application form that is signed by the prospective customer
“I agree that all agency charges, legal costs and other expenses incurred by XYZ Co. ltd. in attempting to recover overdue amounts will be charged to the account of the appropriate debtor. I give permission for XYZ Co. to obtain information from any source to verify any statements made in this application.”
However, when an established account becomes delinquent, then a standard letter can be sent advising the debtor that
payment must be made in full within a given time (ten days or so). Failure to do this will result in the debt being
sent over to BCA for collection and all legal, collection and other expenses will be added to their account. Whilst
this is not legal and will NOT stand up in a court of law, we will endeavor to recover the additional expenses for you.
The general practice within the Community is to charge some kind of fee, be it a service or finance charge or administration fee, for late or part payment of an account, and the public is comfortable with this arrangement especially since the introduction of “plastic money” in our lives. The practice of 100% debt recovery will put your company in a better financial position as the debtor will be reimbursing for any amounts (such as legal fees, BCA commission, etc.) charged to you by BCA relating to the recovery of the debt.
When you are desirous of placing a debtor with BCA for collection, you must first fill out a Debt Assignment Form giving as much information as possible. The forms are provided free of charge and are enclosed. Attach a statement, invoice, returned cheque or whatever proofs you possess to substantiate your claim.
BCA will notify the debtor that the claim is now listed at BCA and payment in full is requested. The reporting file of the debtor is noted for record. A week is allowed for the notice to travel the postal system, then the telephone is used as a collecting tool and follow-up letters are sent as necessary. Copies of these letters and notices are also enclosed.
You can request update progress reports from BCA, which we will supply periodically. Should you at any time require additional information on a debtor, just contact BCA by telephone (292-2660) or fax (295-5974).
A super saver designed especially with you in mind!
A letter is sent out by BCA on our letterhead to alert your debtors of their delinquent accounts, requesting payment in full to avoid having the account listed with us for collection. A sample letter is enclosed. This is done for only 10% of the debt. You are under no obligation to list the debt if it is not paid, but should you wish to list it, BCA will take the collection for 10% OFF THE REGULAR COMMISSION RATE. THE PRE-COLLECT CLAIM MUST BE “ROLLED OVER” FOR REGULAR BCA COLLECTION WITHIN 30 DAYS TO QUALIFY FOR THE LOWERED COMMISSION RATE, AGAIN, PLEASE NOTE, COLLECTION RATES FOR AGED ACCOUNTS RECEIVABLE WILL APPLY AS NOTED BELOW BCA will do all the work and you will reap the rewards and save yourself money in the bargain.
CLAIMS SUBMITTED WITHIN THE FIRST 120 CALENDAR DAYS AFTER DATE OF CHARGE, OR PURCHASE WILL BE
BILLED AT 25%.
120 DAYS = 25% COMMISSION CHARGED
CLAIMS SUBMITTED AFTER THE DATE OF CHARGE, OR PURCHASE EXTENDING FROM 120 DAYS UP TO 365 DAYS WOULD BE BILLED AT 35%.
120-365 DAYS = 35% COMMISSION CHARGED
CLAIMS SUBMITTED AFTER THE DATE OF CHARGE, OR PURCHASE EXTENDING BEYOND 365 DAYS WILL BE BILLED AT 40%.
365 DAYS AND OVER = 40% COMMISSION CHARGED