Learn about the services offered by the Tasmanian Collection Service and how your business can benefit from them.
The Tasmanian Collection Service (TCS) offers credit reporting and credit protection services for businesses in Tasmania, Australia. The company primarily helps businesses avoid bad debt by providing credit reporting, account recovery and debt collection service. Their range of publications also allows credit providers to spot potential problems early.
Type of services provided
TCS has the most comprehensive database available on Tasmanian individuals and businesses. This service is very useful for credit providers who want to check the creditworthiness of applicants. The information offered by TCS is in accordance with the Privacy Act 1988.
If your business has received authority from the credit applicant to receive this information, TCS can provide instant access. The credit bureau has details of over 150,000 credit inquiries and 65,000 defaults that are made in Tasmania each year.
The debt collection service by TCS is commission-based. That means that you won’t need to pay anything until after the company has recovered the debt on your behalf. TCS does not require a creditor to prove the debt. The company just needs a basic statement from you identifying the name of the debtor, their address, amount owed and the contact number.
If your agreement lets you recover overdue interest, this must be added to the claim prior to lodgement. After you have lodged the claim, TCS will record a default on the debtor’s credit report.
The account management division of TCS helps businesses maintain good customer relationships. It involves a structured and personal follow-up to collect payments from time periods ranging from the due date to as much as 60 days. The independent account managers from TCS do not seek to recover bad debts because their main aim is to help you keep existing customers. The account managers can also conduct a review of your existing credit policy to minimise the risk of bad debts in the future.
How to compare credit management providers
- Range of services – what type of credit management services does the company provide? Look at your business needs and determine if the TCS is the right company for your credit reporting, account management and debt collection requirements.
- Directories – this is important in choosing a credit reporting agency. For example, TCS has the most comprehensive information in Tasmania. Other companies specialise in other areas of Australia.
- Reliability – does the credit management company provide relevant information? If they offer debt collection services, can they actually collect the debt? There are many account management and debt collection companies in Australia but TCS has a track record of providing good service.
- Value – compare the fees that are charged by each company. TCS takes a percentage of the debts collected. Do other companies take a lesser percentage? Ask for a quote from different providers to get the best deal.
Things to consider
If you’re considering whether to use a credit management service, there are things you need to look into such as whether the report will be used for business or consumer purposes. Credit agencies offer various types of reports. For example, if you have someone who wants to pay for certain products or services in installments, you need to ask for the consumer credit report. On the other hand, if someone is applying for business purposes, you should ask for their commercial credit report.