Recession Buster: Reducing Bad Debtor Days Made Easy

Palmerston North, New Zealand — New technology start-up, www.lessdebtors.com, launched a world first "debt tender" website this week that is already attracting businesses and debt collection agencies from around the world.

How does it work? Businesses list a bad debt on the www.lessdebtors.com website in a similar way to listing an auction on eBay, except it is free for a business to list as many of their bad debts as they like. Then collection agencies submit proposals to collect them. The successful collection agency pays an introduction fee to www.lessdebtors.com and collects the debt on behalf of the business. Simple.

Less Debtors Managing Director, Jody Lane, says that he was surprised at the end of day one to be told that there were already 10 debt listings, and four collection agencies had registered and entered proposals. “We were still ironing out a few bugs on the frontend so it caught me by surprise – but it was a pleasant surprise.”

The site makes it possible for any business anywhere in the world to list bad debts and receive proposals to collect them. Whilst it isn’t a silver bullet it will certainly be used as an extra tool in the toolbox to help keep companies afloat during the recession and beyond.

It could also assist collection agencies to grow their business, not just in size, but because the listings can be sorted by region, it could make it viable for an agency to extend the locations that they operate in quickly with little or no risk.

“If the site adds that sort of value to both businesses and the collections industry” says Lane, “that would be a very satisfying result.”