When it comes to running a business, we all know that each and every customer that comes our way is not going to trust-able or reliable at all. In fact, you are bound to run in to more unreliable customers than reliable customers. This is a very normal thing to happen within any business. When people owe you money, it is going to be extremely hard to get your hands on that money if you try to do so by yourself. This is exactly why you are going to profit from getting in touch with a good debt collection service. By handing your debt troubles over to a debt collection service, you have a higher chance of getting your money back because these services are going to be run by professionals who have their ways and methods of getting your money. Another reason to do so is because they are legal services. However, as not all services are excellent, here is how to choose a good service.
Assess your needs
This is the first step to choosing what service you want to hire. You must take your time and assess your business needs, this is when you must take a look at the debt history of your customers before deciding to let a service handle it. If you think your customers have not paid after agreeing to pay through a certain payment method or if your brand new customers have failed to make their payments, the debt collecting service can go through a credit history check if necessary and then go through with the plan to get the money back.
Commercial or consumer agency?
The next step is to decide if your business debt collection agency is going to be a commercial agency or a consumer agency. Based on the people who they take debts from, these agencies are divided in to these two branches. Commercial collection agencies are the services that focus on business debt collections while consumer agencies are services that focus on people’s individual needs. Then, depending on what kind of service you require, you can go ahead and make the right decision.
Determine the debt date
The last factor to determine what service to choose is by assessing the dates of your debts. If your debts are brand new, or only slightly old, then you have to choose an agency of Australian Recoveries & Collections that specializes in that debt age. If your debts are older debts, then your agency might differ. Not all agencies would take the date of debt in to consideration, but assessing it will help you choose.
There will come a point where your company will need access to more money. It may be due to expansion or the purchase of new equipment. Whichever the reason, it is important for you to identify potential outlets for funding and how you should approach them. A bank loan is the easiest way in which you can get funding but before you approach them, there are a few points that you must consider in order for it to go through successfully. Read on to find out.
Calculate the Required Funding
The first step is to estimate the amount of money that you will need. Most business loans Castle Hill have upper and lower limits depending on the company revenue, so it is good to estimate the amount with an idea of these rates. Most companies end up not asking enough, however it is also crucial that you do not ask for too much as well. A good example is, if you are expanding your retail space, you could ask the contractor an estimate for the construction costs. Any other costs involved can also be calculated such as for new furniture and movers.
Financial Statements and Documents
As an operating company, you should have your financial records such as the profit and loss, balance sheet and cash flow statements all in check as lenders will want to see these documents before confirming the funding. Other documents required may include an updated resume, tax returns and personal and company financial statements to name a few. If you need clarity and help on the financials, an accountant or even a business finance broker can be consulted.
Type of Loan
Lenders tend to ask a lot of detailed questions apart from checking the above documents and necessary paperwork before they confirm funding to you. Some of the questions are to find out what exactly the money that you borrow will be spent on. As funding can differ for each need, you will have to scrutinize on this important question before you approach a lender or a bank. There is specific funding given out for expansion, relocation, payroll and equipment to name a few.
Draw Out a Plan
The next requirement entails in making the lender fully understand what your company does and is about. A company plan will help them understand the key operations of your company, goals, target market, competitors, management and financial projections. You can find out the structure of these plans online or consult a company development officer for some assistance. Some banks may require specific information to be included so it would help for you to consult your bank too.