Affordable Debt Collection from R250 per debtor
You've done the work. Supplied the goods.
But your debtors aren't paying you.
Their cashflow problems shouldn't be your problem.
Our affordable debt collection service helps you fix your cashflow without throwing good money after bad.
Every business struggles with non-paying customers.
Your business needs consistent cashflow to pay staff salaries and other expenses. But the attitude towards debt is worse than ever. Outstanding debt books can get out of control quickly.
It's frustrating to find out how much it can cost to collect debt effectively. Many debt collectors make big promises, but they are not qualified to handle the legal process.
If the debt owed to you is less than R50,000, it often doesn't make financial sense to collect this debt compared to normal legal costs. So we created the Affordable Debt Collection project, to help clients collect debt affordably.
Affordable Debt Collection helps you collect debts for as little as R250 per debtor.
How does the debt collection process work?
First, we send a Letter of Demand by email, post and Whatsapp.
The debtor has 10 days to pay or make an arrangement.
Around 50% of debtors pay when they recieve our Letters.
For those debtors who don't pay: we consult with you and
proceed with summons and judgment.
Terms and Conditions of Affordable Debt Collection
We offer our Affordable Debt Collection as a special service to assist clients with smaller collections, to help make the process make financial sense. Please note the special terms and conditions.
1. The Three Phases
There are three phases to collections:
a. Letter of demand. We send a letter of demand to your debtor by email, registered post and whatsapp. Calls to debtor not included. We do not keep resending the same letter - if the debtor doesn't cooperate, client must consider moving on to summons. No consultation or document review included in this step. Clients must provide debtor information on our standard spreadsheet. Commission applies as our reward for collecting without you having to resort to further litigation - payable by client upon successful collection. We try to make the debtor pay commission as well, but client pays regardless.
Cost R250 + 10% commission incl. VAT
b. Summons, judgment and blacklisting. If the debtor ignores the letter of demand, we consult with you and review your documents, then draft, issue and serve summons on them. If they do not defend, we proceed to default judgment and writ of execution (which allows the sheriff to attach their assets). We blacklist the debtor as well - this puts more pressure on them to pay their account. Sheriff's costs, correspondent attorneys and other processes not included.
Cost R3,500 incl VAT, no commission.
c. Full litigation.
If your debtor believes they have a defence (e.g. they argue you rendered defective goods or service) they may defend the summons, in which case the matter becomes defended litigation and you must consider going to trial if the amount at stake is worth it. Litigation then takes a longer route - pleadings, discovery, trial etc. Our normal hourly rates apply for this work.
2. Disbursements and other processes not included.
Disbursement costs are not included. Most common disbursements:
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Sheriff's fee for service of summons (+- R1,500 per service attempt per Defendant). At least one service is required.
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Sheriff's costs for attachment and removal of assets.
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Correspondent attorneys' filing fee (courts outside of Pretoria - usually R500 - R5,000)
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Advocates' fees - where client prefers Advocate to do court appearance.
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Tracing, expert witness documents and other services.
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Other legal processes outside of standard debt collection process. E.g. substituteed service application, Section 65 financial enquiries etc.
"All our dealings have been handled professionally and quickly. We would highly recommend."
-Dale T.
"Professional & quick. We have been very satisfied with their guidance over several years.."
-Rajen P.
Debtor not paying you?
They also aren't paying other creditors.
Take action now while there's still a chance of recovery.
