How to Collect a Debt From a Business, Expert Guide

How to Collect a Debt From a Business,  Specialist Advice

Are you or your company looking for advice on how to collect a debt from a business client?

It may be that your company has provided a service and the invoice has not been paid by the debtor. Alternatively, you may have commercial tenants that are failing to uphold rent payments. The list of ways that firms can be owed money is endless, especially in times when business transactions are fast-paced.

Commonly, clients ask for a service to be done quickly, only to fail to make payment once completed. It should give peace of mind to know that you are not alone, as three in five enterprises experience late payments.

Out of all the many challenges that businesses face, money will always be at the forefront. Having a constant stream of income is inevitably responsible for whether the business thrives or goes under.

After all, when invoice payments go unpaid, this slows cash flow and can in turn harm your companies credit rating. Not only this but your reputation may be put in jeopardy if you are seen to be struggling financially.

When a company is owed money, this can also prevent new opportunities which will further create cash flow insecurity. Regardless of how you are owed money, it is clear that a solution is needed to recover this quickly and effectively.

How to Collect a Debt From a Business – Prevention

When a client fails to pay you the money you’re owed, it is commonly not related to any ill intentions. As with every business, credit control limitations dictate whether or not payments can be made on time. This is especially true for small businesses that have to keep a firm eye on company spending.

In relation to this, we recently produced an expert guide to avoiding late payment, which we recommend reading. In many cases, a simple phone call or email to remind the client of the payment terms they agreed is enough. Reminders should be continued up to 30 days after the initial invoice due dates.

If the client is struggling financially, this may be a good time to discuss putting together a payment plan. Although this will be paid in parts, you will have an agreement that says the full amount will be paid eventually.

Keeping a professional tone when communicating with your client is one of the main factors in maintaining a happy business relationship. Knowing how to collect a debt from a business should not have to feel like a challenging task, especially when there are options available.

How to Collect a Debt From a Business – The UK’s Leading Commercial Debt Collection Agency

Should the above tips fail to reduce the amount of bad debt amounts your business has, we recommend contacting a professional. Federal Management has the expertise required to successfully recover any unpaid debts from clients. For our clients, we are rated as the best commercial debt collection agency in the UK.

Throughout our long history, we have gained the experience to know how to collect a debt from a business in the most proactive and professional way. We are authorised and regulated by the Financial Conduct Authority (FCA) to recover debts under the consumer credit act.

This demonstrates the calibre of service that is provided by Federal Management’s debt collection specialists. Contact our friendly experts today to kick start the recovery of your unpaid business debts.

How to Collect a Debt From a Business – FAQ

Can we recover a business debt independently?

Attempting to recover a debt independently has been known to produce little results for a large cost of time and resources. It is recommended to use a professional debt collection method instead.

What debt collection methods are available?

The most common ways to recover monies are by sending a letter before action, using solicitors or a debt collection agency. It is worth noting that taking legal action can be expensive, on top of any county court fees.

What is the best way to recover a business debt?

The best way to recover money from a business is by using a debt collection agency, such as Federal Management. We have recovered millions of pounds worth of unpaid business debts since 2004.

What are Federal Management’s debt recovery success rates?

Our expert debt collectors provide our clients with an average success rate of 90% and above on all undisputed debts. As a result, we are unrivalled in terms of effectiveness.

What information do we need to provide to a debt collection agency?

Federal Management’s friendly debt collection advisors will require all relevant documents related to the debt in question. This can, and should, include anything from invoices, texts, emails, etc.

Posted on March 15, 2022