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Recovery of Debt – What To Do When A Client Doesn’t Pay

Recovery of Debt

Recovery of Debt – What To Do When A Client Doesn’t Pay

When you have provided a service to a client, it is only right that they pay you for the work that has been done.

When it comes to business-to-business dealings, it has become extremely easy for organisations to get out of paying on time as the services are usually provided before payment – these are usually set out in a payment terms contract.

It is no secret that businesses will suffer from this from time to time.

Based on research from last years’ financial statistics, around 57% of businesses have experience with unpaid invoices which unfortunately shows how common this issue is.

Thankfully, however, this means that there are still 43% of businesses remaining that will know what to do should the same happen to them.

Having a client that doesn’t pay their invoices can, on some occasions, be resolved quickly and amicably by simple means of professional communication.

In this article, our team of industry experts will go over why it is so important to know where to turn when (and if) the inevitable happens.

Recovery of 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

Business Debt Collection

There are many reasons why a client may not be able to pay their invoices on time, so it is always recommended to contact them before taking this any further.

Later in the article, we will outline the key scenarios in which clients may not pay their invoices.

At Federal Management, we are dedicated to delivering the UK’s No1 Business Debt Collection solution and have demonstrated industry knowledge to help with all debt collection enquiries.

Debts can arise in any business sector and across all industries – we have expertise in most business sectors and here are some sectors that have used our B2B Debt Recovery services in the past:

  • Small Businesses
  • Manufacturing and Distribution
  • Telecoms Firms
  • Recruitment Agencies
  • Financial Services Companies
  • Trade Associations
  • Government Agencies
  • Media & Marketing Companies
  • Law Firms
  • Wholesalers
  • Sports Based Organisations
  • Advertising

Business Debt Collection – Typical Scenarios

When it comes to a client not paying their invoices on time or not paying you for services that you have carried out, this can be due to any of the following scenarios:

Financial Difficulties

A common reason for clients not paying is that they are struggling with financial issues themselves and are simply unable to pay for the services you have carried out.

If payment terms are discussed ahead of a project, financial struggles will be unforeseen as these terms usually come 30 days AFTER any services have been carried out.

A situation like this is best solved by contacting the debtor professionally to amicably resolve this as an extension of payment terms is predominantly the main solution.

Payment Dispute

Clients may put have an issue with your invoices and form a payment dispute which will prolong the amount of time in which you are paid.

In the current economic climate, where cash flow is more important than ever before, this situation is something that needs to be resolved as soon as it is made apparent.

There are however usually genuine reasons for someone to dispute a payment, including:

  • A mistake on the invoice such as, for example, a wrong address
  • Disagreement with the price
  • Claims that the original work was never carried out
  • Unable to pay due to financial difficulties

Not only is a payment dispute problematic (especially if payment terms have been agreed), but can take a long time to resolve if you are unsure on the practices of resolution.

Thankfully for you, our team of debt collection experts recently put together an article outlining the common practices for resolving a payment dispute.

No Intention to Pay

In the worst circumstances, it may be that the client never intended to pay at all and they are simply going to keep putting off paying until you forget about it.

It is an unfortunate fact that those who have no intention to pay is common across every industry and, as discussed above, it is imperative that you know what to do when this situation occurs.

It is only right that you are paid for the services that you carry out and if you are not, this can affect your cash flow, business and in-house resources.

What To Do When A Client Doesn’t Pay

The number one recommendation for what to do when a client will not pay the money that they owe you is to go to a professional Debt Collection agency that has a strong, demonstrated background history in recovering money.

At Federal Management, our expert team of award-winning debt collectors are on hand to assist with any dispute enquiries by achieving unrivalled results whilst minimising the costs.

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If your business is waiting for payment or being given the run around currently, it pays to speak to experts such as ourselves.

Our Business Debt Recovery Team is here to help you and they have demonstrated industry experience over 15+ years. We collect millions every year in unpaid business Invoices and can help you too. Our Award-Winning services see our clients get what they are owed, and as we are approved by the Financial Conduct Authority (FCA), you can rest assured that your claim is being handled in the most professional manner possible..

Maximum results for minimum cost.

Recovery of 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