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How Do I Recover My Debt? Expert Collection Tips

How Do I Recover My Debt? Expert Collection Tips

How Do I Recover My Debt? Expert Collection Tips

When a business is owed money, it can cause a lot of problems as those funds are needed to run the company.

A recent study showed that 4 out of every 5 businesses in the UK were owed money from an unpaid invoice. In some cases, some businesses needed to begin insolvency proceedings due to the lack of funds. With this in mind, it is important for a business to take action when recovering debt from a company.

Whilst professional services exist to aid with debt collection, many businesses are able to take steps themselves in order to recover a debt. We asked our debt collection experts to help explain what measures a business can take in its own debt recovery process.

How Do I Recover My Debt? | Get Expert Help From Debt Collectors Now

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

How Do I Recover My Debt? Recovering Debt from a Company

In order to be successful, a business must maintain a stable cash flow. Unpaid invoices and non-paying customers can greatly affect this, and so it is important to act on any instance of debt quickly and appropriately.

In many cases, instructing a professional is the best solution, but you must factor in any debt recovery costs before making a decision. Here are some steps that individual businesses can take in order to help with debt collection.

Set Up Payment Terms on All Agreements

One way of aiding the debt recovery process is to implement payment terms into your agreements. For example, when you have secured a new opportunity and are about to commit goods and services, you should ask your new client to review and agree to your payment terms.

These terms are presented to the client in a document, and detail what their payment obligations are to you. This will include due dates and information on what happens if there are any complications or disputes.

Most businesses operate on payment terms of 30 days, the time period a client has to pay once an invoice is issued. Larger companies can sometimes offer terms of up to 60 days.

Creating payment terms that a client agrees to can help to prevent debt from occurring in most cases.

recover my debt recovering debt from a company

Charge Interest for Late Payments

Another good way of reducing the number of debts from non-paying clients is to implement late payment charges. These are normally included in businesses payment terms, but there are also other ways of claiming interest on unpaid invoices.

The rate of interest can be calculated using the bank of England base rate. Whilst this will provide an incentive for clients to pay on time, there will always be those that will choose to ignore this and withhold payment. In cases like this, you must take action to enforce the collection of the debt.

Chase for a Payment in the Right Way

Even with the best preventative steps in place, it is common for debtors to ignore the consequences and not pay. When this happens, you will need to start chasing for payment as soon as possible.

Large companies may have an in-house credit control department to do this, but a small business may not have the resources required to do this.

When chasing for payment, it is important to document all communications. You should also be professional in tone, and clearly state that payment is outstanding. Take care to only contact the debtor at appropriate times, such as between 8 am and 6 pm on weekdays.

It is important to remember that you should set a cutoff period for chasing debts, as it can become costly to chase them after a certain amount of time has passed.

Issue a Final Notice

If you have sent reminders to your debtor and they have not made a payment, this may be a sign that they are ignoring you. If your invoice is still not paid 30 days after it was overdue and your reminders have gone unanswered, you should send a final notice letter.

This letter should explain that you intend to take action if the debt owed is not paid within a reasonable time frame (normally 14 days). This action could be to begin court proceedings, use the money claim online service or instruct a professional debt collector.

The Best Way Of Recovering Unpaid Invoices UK – Contact a Professional

For many businesses, it is better to contact a professional debt collector to recover your owed money.

There are many options for recovering a debt, and each one has elements that must be factored into your decision-making process. One increasingly popular solution is to instruct a professional debt collection agency.

A debt collection agency will provide an effective and low-cost solution, ending the matter amicably for all involved.

For commercial debt collection, Federal Management is regarded as the UK’s leading recovery agency.

Speak to one of our friendly debt collection experts today for help with your commercial debt.

How Do I Recover My Debt? | Get Expert Help From Debt Collectors Now

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT