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Money Owed by a Business? Here’s How Your Company Can Collect it

Money Owed by a Business? Here’s How Your Company Can Collect it

Money Owed by a Business? Here’s How Your Company Can Collect it

A strong debt collection process is an essential part of a robust credit control system. Businesses across Scotland, England and Wales are constantly faced with issues relating to payment. Taking the right steps to make sure your cash flow is not affected can help your business to enjoy the success it deserves.

Most businesses have a credit control process already in place. Chasing the client that owes you money is a straightforward task, but enforcing payment is often a challenge.

Many debtors will deliberately avoid paying for as long as possible, and others will simply ignore all attempts you make to contact them.

The danger for the original creditor or supplier is spending too long on the debt collection process. It is important to recognise the signs of a client who is evading payment. If this is not done, you risk spending more time and money than is necessary.

When this happens, most businesses will be more inclined to write off debt than continue to chase it. However, there is always a better option, and recovering money owed by a business is never out of reach.

Money Owed by a Business? Get immediate help from our Experts

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

Enforcing Money Owed by a Business

When you are owed money, you will naturally want to get it back. Most companies have some kind of process for this, which usually involves chasing the client for payment.

If a client is proving to be difficult, it can be a challenge to get them to pay. Many debtors will aim to confuse the situation or bombard you with one excuse after another. Ultimately, this only wastes your time and can be avoided using firm and effective debt enforcement solutions.

To begin with, it is best to make contact with your client to understand the reason they are withholding payment. In some cases where the debtor has simply been unorganised, this can serve as a gentle reminder for them to pay.

Contacting the debtor should always be done the day after the payment is declared overdue. At this point, they will have usually have had at least 30 days to pay, but have not done so. Waiting any longer without taking action yourself may only be a waste of time.

If you feel like your client may be trying to deliberately withhold payment for no good reason, or if they are ignoring you, it may be a good idea to speak to a professional for an assessment of your debt. Federal Management offers a free pre-action appraisal of debts, which assesses how viable a successful recovery will be.

In some cases, businesses may seek to take legal action against a debtor. This often results in a County Court Judgment (CCJ) being made against the debtor. This will need to be enforced, however, and it is not unheard of for debtors to ignore them for as long as they can.

A debt collection agency will be able to take the appropriate steps to enforce the collection of your debt. An experienced agency like Federal Management will provide a completely professional service, ensuring that your business relationship with the client is enhanced.

Recovering Money Owed by a Business

Using a Debt Collection Agency to Recover Money Owed by a Business

Federal Management provides a specialist commercial debt collection service that helps businesses across the UK.

We provide a fast and effective service through our proven debt collection process.

If you are looking to recover money owed by a business, speak to our debt collection experts now.

Money Owed by a Business? Get immediate help from our Experts

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

Money Owed by a Business? Frequently Asked Questions

Can I recover money owed by a business in another country?

Yes, if you are owed money from a client based in another country a professional debt collection agency can help. As well as business debt collection, Federal Management specialises in recovering money internationally. Speak to us now for more information.

What is the cost of commercial debt recovery?

Depending on the exact circumstances of the debt, each case must be priced individually. Speak to one of our debt collection experts now for a free pre-action assessment of your debt.

When should I seek the help of a debt collection agency?

If your client’s outstanding payment has become overdue, it is always better to contact an agency as soon as possible. This is the best way of recovering the money a company owes you as soon as possible.

Is there any way my business can prevent debt from occurring?

Taking steps such as asking clients to agree to payment terms, sending payment reminders in advance and including late payment interest charges on your invoices can all help to prevent a debt. Unfortunately, many debtors will still try to withhold payment despite this. If this happens, speak to Federal Management for assistance.

Should I take legal action if I have money owed by a business?

Before committing to any course of action you should consider every option. Seeking to take legal action in a small claims court independently may become an expensive option. Instead, you should consider instructing a debt collection agency to explore alternative and more cost friendly options.