The British have a reputation for being terrible when it comes to discussing money, however when you own a business this is simply not an option.Cash flow always is the life blood of any company.
Debtors can be a time consuming and stressful. It takes your focus away from the core business practices. The use of a professional Debt Collection or Recovery agent is a good way of collecting overdue debt and usually results in the faster payment of an overdue account compared to in house credit control processes.
A professional Debt Collection company who specialises in dealing with slow paying customers, enables you to focus your attention back onto your business yet still get the money that is owed to you.
Most Debt Collection companies will charge on a time cost basis or fixed fee, however there are many that will offer to collect debts on a no-win no-fee basis. In the later case if you don’t get paid then neither will the Debt Collection agent so you can be assured they will do everything they can to collect your money. Some companies will also offer a simple letter service for a fixed fee, however this is far less effective and can add cost whilst still leaving you with an unpaid debt.
You might need a single debt or a bulk collections service. Unlike consumer debt, which is suitable for Call Centre style collections processes, it is best for (commercial debt) an agent that adopts a bespoke collections process which is escalated at every attempt to collect the debt. For example you may require a discreet approach where you would prefer to maintain a customer relationship or perhaps a more aggressive approach for customers with whom you no longer wish to trade (after all if you are not getting paid do you really want to be selling more goods or services to this customer).
If the initial recovery processes fail to result in the payment of the debt then the agent should be able to escalate proceedings through the courts, enforcement options or maybe even an issuing of a Winding Up Petition.
In addition to the debt you are owed, you might be able to add late payment compensation and interest to the sum due.
If you would like to discuss Debt Recovery with a Solicitor, please click on the button below.