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If you can accept that you are just incapable of doing what is required to chase a debt, then perhaps you could consider factoring. The term factoring means that you sell a debt, which a customer owes you to a finance company. This Finance Company puts its own debt recovery program into action. So, rather than playing the waiting game and going through the stress of Debt Collection Fees, you let the factoring company do the chasing, and pay you 80% of the outstanding value of the debt for example. Keep in mind, if the factoring company is not able to catch the late payer, then they will return to you and get the money they paid you less fees! In addition, there is interest involved. Therefore, as you can see, there are both pros and cons to factoring – but should all else fail it could be something to consider.

A story that always comes to mind when leases are mentioned is the one about friend, who started out with a hotdog stand at Sydney’s Paddy’s Markets back in the 60s. Debt Collection fees were different back then. As we all supported the local markets throughout the 70s and 80s, his business grew too. By the mid-70s, he went to his bank to ask for a $60,000 loan to buy a new truck all fitted out with counters, stoves, fridges and so on.