™You did the work and sent the invoice. Then you sent a reminder, and another. Chasing money takes time away from the jobs that pay. VCM takes over the follow-up. I’m an experienced mercantile agent based in Bendigo, with around ten years in banking and finance complaints and collections before that, and I work the region in person, so when letters and phone calls don’t get a response, someone can knock on the door. Everything stays within the law and stays courteous, and nothing major happens without your OK.
How it works
- Refer the debt. Fill in the referral form and attach your invoices and any signed quote or terms. It takes about ten minutes. We check the paperwork and confirm in writing that we’re on the job.
- Letter of demand. We write to your customer on VCM letterhead. The letter sets out exactly what’s owed and who it’s owed to, how to pay, and how to raise a problem if they disagree. They usually get 14 days.
- Follow-up. Phone calls, emails and SMS within the hours and limits set by the ACCC/ASIC debt collection guideline. Most debts are settled here, either in full or on a written payment plan.
- Field call or skip trace, if needed. If your customer has moved or won’t respond, we can trace a current address and visit in person with a final notice. These are charged in addition to commission, quoted case by case and only done with your approval.
- Payment, or the next decision. When the debt is paid, you get paid (see below). If a debt can’t be settled, we tell you your options plainly: a final notice, a referral to a solicitor, or a claim in court or a tribunal. Nothing is filed and no money is spent without your written approval.
If your customer disputes the debt: we pause and come back to you. We won’t pressure anyone over a debt that’s genuinely in dispute.
Fees
Commission on money we recover. No letter, admin, lodgement or upfront fees. No commission is payable if nothing is collected.
| Outstanding balance when referred | Commission (plus GST) |
|---|---|
| Under $1,000 | 25% |
| $1,000 to $4,999 | 20% |
| $5,000 to $10,000 | 15% |
| Over $10,000 | 10% |
- Charged only on amounts recovered, including part payments and instalments.
- The rate is set by the outstanding balance when you refer the debt.
- All rates are plus GST (VCM is registered for GST). You get a tax invoice for our commission.
- If your customer pays you directly after you refer the debt, tell us. Commission applies to that payment too.
- If a debt ever needs to go to court, court fees and any solicitor’s costs are paid by you directly to the court or solicitor, and only with your approval. VCM doesn’t add any fee of its own.
Skip tracing and field calls are charged in addition to commission. Skip tracing is carried out by a third-party provider and field call fees depend on location, so these are quoted case by case and only undertaken with your approval.
How you get paid
- Your customer pays into VCM’s client funds (trust) account, which is kept separate from VCM’s own money.
- Once the debt is paid in full, we deduct our commission and GST and send you the balance within 5 business days of the funds clearing, with a statement.
- If your customer pays by instalments, each payment is held in the client funds (trust) account until the full debt is paid. We then send you the total in one payment, less commission and GST.
- Progress reports: we update you whenever there’s contact with your customer or a payment is received.
What we need from you
- Your business details: name, ABN, contact person, phone and email
- Your customer’s details: full name or company name, ABN or ACN if a business, last known address, mobile and email
- Copies of the unpaid invoices, plus any statement
- The signed quote, terms and conditions or credit application, if you have them
- A short history: reminders sent, any payments, and anything your customer has said about why they haven’t paid
- Whether there is any dispute about the work, the goods or the amount
Referral form (PDF) Fillable referral form (PDF) Fees and terms (PDF)
Common questions
What does it cost if you don’t collect anything?
No commission is payable if nothing is collected. The only other costs are any skip tracing or field calls you’ve approved, which are quoted to you first.
Do you take small debts?
Yes. Small debts are often where a letter on agency letterhead works best.
How long does it take?
Many debts are settled within a few weeks of the first letter. Payment plans and disputed debts take longer. You’re updated along the way.
Will you damage my relationship with my customer?
We’re firm but courteous. Plenty of customers keep trading with the business afterwards, especially once a realistic payment plan is in place.
My customer isn’t in Bendigo. Can you still help?
Yes. Letters, calls and payment plans work wherever your customer is. A field call further away is quoted by location.
Can you take them to court?
VCM isn’t a law firm. If a debt needs to go to court, we’ll talk you through the options and costs, and can refer you to a solicitor. Nothing is filed without your approval. We can also serve the court documents.
Do I need to keep chasing the customer myself?
No. Once you’ve referred the debt, we handle contact with your customer. If they’d prefer to deal with you directly, that’s fine. It’s entirely up to you whether you speak with them yourself or refer them back to VCM. Either way, just let us know about any contact or payment you receive so the file stays up to date.
VCM follows the ACCC/ASIC Debt collection guideline for collectors and creditors (2021), the Australian Consumer Law and the fair trading laws that apply to debt collection. Mark Stevens is a member of the Institute of Mercantile Agents.