Dealing with Unpaid Commission – A Guide To Recovery

Recovering Unpaid Commission – A Guide To Disputes and Debt Recovery

Commission is earned by successfully carrying out sales based tasks for a business. If you have sold a product or a service, and if it is a part of your businesses payment structure, you are entitled to be paid. This can be via affiliate scheme, referral programme or simple sales act on behalf of a third party.

Or, in other cases, your business might have provided a referral or service to another. It is common for companies to act on a commission basis.

Unfortunately, instances of unpaid commission is far too common, and many business people find themselves unrewarded for their hard work.

Did you work for a business that has not paid your commission? Have you sold goods or services but not received your pay? If so, you can take the appropriate steps to recover your unpaid commission.

Has your business claimed compensation on behalf of an individual but not had their commission paid? There are many different types of scenarios where unpaid commissions can occur.

Federal Management has helped businesses and business people alike recover all manner of debts since 2004. We are often regarded as the UK’s leading business to business debt recovery agency. If you have not been paid commission for the work you have carried out, we can provide the most effective and cost-friendly solution.

Examples of Unpaid Commission

There are 2 main types of commissions. Most people think of commissions as what salespeople receive upon a successful deal. This is normally a percentage of the value of the deal.

For example, a commercial car dealership may have a commission rate of 10% on all successful sales. When the salesperson sells a car worth £20,000, they earn a commission of £2,000.

For employees, commissions are considered as wages, however, this is not always the case. If you have not been paid commission, seek out legal advice or help from a professional debt collection agency such as Federal Management.

For businesses, this same model will carry over but can be a way the company will earn money as opposed to an individual salesperson. An example could be a law firm that earns a commission following a successfully won case.

For companies like this, the commission they earn is essentially the same (or can supplement) as a standard fee. Very often, once the compensation has been won, the individual may feel they should not have to pay and therefore unpaid commission occurs.

Commission Agreements and Contracts

In most business agreements, it is normal to discuss the subject of commissions and payments at the onset, before work commences. This is true for both employees and businesses alike.

An employee may have their commissions outlined and explained in their initial contract. When they begin at the business, they must agree to these terms as part of their regular contract of employment.

This should always be the same when a business enters into a new agreement with a client. It is critical that payment terms and obligations are clarified and agreed upon before work commences. Clients should always be aware of what they must do when it comes to payment.

This includes details on any late payment fees and charges, as well as the specifics of when commissions and payments will be due.

Setting up a robust contract as well as getting a new client to agree to them is a good way to reduce unpaid commissions.

“My Business Has Not Been Paid Commission” – What You Can Do

Every business owner will know that there are always instances where a client will not pay. This might be a client unwilling to pay the full amount of their invoice, or they might be withholding it entirely.

There are many reasons why this could happen, but it is also extremely important to take debt recovery action as soon as possible.

In some cases, a client may be disputing the completion or quality of the services you have provided. In other cases, they might be facing financial issues or insolvency themselves, and so they are unable to pay. Or, they may simply be attempting to withhold payment entirely with no good reason.

If your business has not been paid its commission, it must be recovered as soon as possible. Most businesses have their own credit control process, but when this does not produce any results it is time to seek professional help.

Law firms and private investigators are often some of the obvious choices for many businesses. However, these are generally expensive, and may not always produce a positive result. In the case of legal action, this may often result in a County Court Judgment (CCJ) being issued. This will still need to be enforced at a further cost.

The instruction of a professional debt collection agency is regarded as the most effective and cost-friendly solution.

Federal Management has recovered unpaid commission fees for businesses across the UK since 2004. Our business debt collection process provides a fully comprehensive and effective service.

If you have not been paid commission and are owed money, speak to one of our friendly debt collection experts now.

Unpaid Commission – Frequently Asked Questions

Can I recover my money if I have not been paid commission?

In most cases, an unpaid commission can be recovered. Speak to one of Federal Management’s debt collection experts now for a free pre-action assessment of your case.

Do I need to seek legal advice for unpaid commission fees?

Seeking the assistance of a law firm is a fairly common choice for many people and businesses. However, it is often far quicker and easier to speak to a professional debt collection agency such as Federal Management.

My business has not been paid commission on services we rendered, what should I do?

You should attempt to contact the debtor and send a final reminder that payment is due. If it has been more than 30 days since your invoice was due, then it is a good idea to speak to Federal Management.

Can private individuals recover an unpaid commission?

Yes, debt collection companies can help to recover unpaid commissions for both companies and private individuals. Whilst Federal Management provides businesses to business debt collection services, we may still be able to help. Get in touch today for more information.

How long will it take to recover an unpaid commission?

Every case is different and recovery times can vary depending on the complexity of the case. The best way to get an estimation on every factor relating to your case is to speak to a professional. Contact Federal Management now for more information.

Posted on February 18, 2022