Our payment structure operates on a “no recovery, no fee” basis.
The commission you owe is calculated based on the total amount recovered or arranged to be recovered.
This fee structure applies regardless of the actual collection of any associated recovery costs.
Here are the details of our commission rates, not including GST:
- 25% for the first $10,000
- 15% for the subsequent $10,000
- 5% for amounts exceeding $20,000
Debt collection agencies usually operate on a contingency fee basis, meaning they charge a commission only if they successfully recover the debt. The rates can vary widely depending on several factors such as the amount of debt, the age of the debt, and the difficulty of the collection. Here are some common structures:
- Standard Commission Rates: These typically range from 20% to 50%. For larger debts, the percentage might be lower, while for older or more challenging debts, the rate can be higher.
- Sliding Scale Rates: Many agencies use a sliding scale where the rate decreases as the debt amount increases. For instance, 25% might be charged on the first $10,000 recovered, with a reduced rate of 15% on the next $10,000, and even lower rates for higher amounts.
- Flat Fees: In some cases, especially for newer debts, an agency might charge a flat fee upfront instead of a percentage-based commission.
- Tiered Rates**: Some agencies apply different rates based on the age of the debt. Older debts might attract higher fees due to the increased effort required to collect them.
If payment has not been received within 90 days, it’s advisable to initiate the debt collection process promptly. Action needs to be moved to a 3rd party (collection team) to rapidly increase the chances of collection.
Engaging professionals for financial recovery offers expertise, legal compliance, and higher recovery rates. They operate efficiently, providing cost-effective services with contingency-based fees, allowing businesses to focus on core activities. This specialized support significantly enhances the effectiveness of financial management within a company.
The duration of the debt collection process can vary widely, depending on the complexity of the debt situation and the responsiveness of the debtor. However we have collected we have collected within a 24 hours.