What to do if a Debtor has Absconded

What to do if a Debtor has Absconded

If you are a business owner, you may have come across people who do not pay for goods or services that you have provided.

This is a very common problem for companies across the country.

Only the most perceptive and experienced business owners…

…can recognise the signs of someone who has no intention of paying.

When someone owes your business money, your main goal should be to recover it.

Most companies have some form of credit control process in place.

This can be successful in recovering an unpaid debt.

Despite this, many people will go to great lengths to avoid paying what they owe.

In some cases, the debtor can vanish from the face of the earth.

We know this as ‘absconding’.

If this happens, it can be difficult to know what to do next.

After all, if you have no way of contacting or reaching the debtor, how will you collect your money?

Federal Management provides the UK’s leading commercial debt collection service.

We have collected millions of pounds worth of debt owed to companies since we opened in 2004.

When you have a debtor who has vanished, you need to know who you can turn to for help.

In this article, our debt collection experts explain what to do if a debtor has absconded.

What to do if a Debtor has Absconded – Tracing a Debtor

Every business owner knows the misery that a non-paying client can cause.

It can also lead to many large problems for the business.

If you have a large enough number of non-paying clients, it will affect your cash flow.

If this happens, it will put your business will at risk, and you will need to make even more difficult decisions.

Having a non-paying customer is already a problem.

When one absconds, it can be even more challenging.

If this happens, you should remain calm and try not to worry.

The issue of what to do if a debtor has absconded is far more common than you might think.

Whatever the circumstances of the debt are, if the person who owes you money has vanished…

…you should take action as soon as possible.

There are many ways to trace someone’s whereabouts.

Not all these are expensive, and there are even some that you can do yourself.

Business to Business Transactions

If your debtor is a business, you may be able to get an address or contact details with a little research.

For example, limited companies have a registered office.

This office is for communication.

It can be a key piece of information in the debt collection process.