Episode 15 - Don't Use a Debt Collector Until You've Listened to This

This week on The Subbies Toolbox Podcast, I'm talking about a topic that catches a lot of Aussie Subbies out when cashflow gets tight: debt collectors.

When a builder isn't paying, bringing in a debt collector can feel like the obvious next step. But before you hand over 18% to 25% of your debt, there are a few things you need to know.

In this episode, I explain how debt collectors actually operate, why they often aren't the best option for Australian Subcontractors, and how they can accidentally interfere with your ability to use Security of Payment legislation.

We also unpack the difference between a letter of demand and a compliant payment claim, why so many businesses are relying on outdated debt recovery systems, and how a proper accounts receivable escalation procedure can dramatically improve your chances of getting paid.

In this episode:

• How debt collectors make their money

• The hidden risks of debt collection agreements

• Why letters of demand often achieve very little

• Common mistakes subcontractors make with payment claims

• How Security of Payment laws can help you recover money faster

• The importance of a compliant accounts receivable escalation procedure

• What Aussie Subbies should do before engaging a debt collector