Peter entered EDC with over $5,000 in unpaid debts spread across over 30 accounts. As he said, many were in smaller amounts which were barely worth his time in collection.
In contacting Peter we found out that, as with most tradies Peter charges his clients on a labour cost per hour contract. Collecting on $100, if it takes him over 2 hours of stress and time on the phone, is almost a net loss.
Peter uses the online account keeping platform Xero.
Peter signed up on the 6th of the month. He loaded 10 of his outstanding debts to “try out the system”.
The first collections activities happened that day. The first payment on his account occurred on the 9th of the month, being transferred straight into his account after 2 days clearance.
Since this time, on the $5,000 outstanding on his account Peter has seen a return of just over $3000, paying a total of $376 in fees. This has also saved him approximately 35 man hours in account keeping and chasing debtors.
Peter is a sole trader operating in Western Sydney.
As a result of his private contract work, and his client's unwillingness to pay on time Peter found himself spending more and more hours on the phone.
Peter wrote to us, here's what he said:
"I'm a sole trader. About an hour of my day I am chasing clients for payments. These are just people who owe me money. It's not even much, like $300 bucks or whatever. Sometimes its not even worth it! Then my mate told me about EziDebtCollections and how they can do $50 for you. Game changer. I don't usually write stuff like this but EDC has meant I get paid on time and I can knock off a bit earlier and their fees are really reasonable."
EDC is an authorised debt collection tool and we work entirely within the parameters of Australian Consumer Law.
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