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?
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.
Businesses with registered offices are straightforward.
If the person who owes you money is a sole trader or the head of an LLP, things can be a little more challenging.
Regardless of the type of business, any information you have may prove to be valuable.
In the case of a sole trader, if you have their home address, you may still have a point of contact.
For the best information, you should speak to one of our debt collection experts today.
The best way to prevent an issue with an absconded debtor is to minimise the risk at the beginning of the arrangement.
Making sure that you are protecting yourself at the start…
…will make any issues you may encounter later less of an issue.
If you are the landlord of a commercial property, you should make it a need that tenants have a guarantor.
There are several warning signs of someone who will not pay that you can look for at the onset of an arrangement.
People who have no intention of paying often provide a fake name when you begin asking for their details.
This is to make it harder to trace them later when they do not pay.
Performing a credit check on all new clients is a good way to verify what they are saying.
Often, you can spot these warning signs can often with common diligence.
You should always be on guard for companies and clients who may not pay their fees.
What to do if a Debtor has Absconded – Instructing a Professional Debt Collection Agency
Despite any preventative measures you can take…
…there will always be those that slip through the net.
Regardless of the circumstances, if you have a debtor that has absconded, you need to know who to turn to for help.
Federal Management is the UK’s leading commercial debt collection agency.
Since 2004, we have helped businesses across the country recover money from unpaid invoices and fees.
If someone that owes you money has vanished, we will be able to help.
We use sophisticated track and tracing systems to locate businesses and individuals who have not paid their debts across the UK.
We ensure that the systems we use are as effective as possible, so we can provide our clients with the best service available.
Once we have located a debtor, we can enforce the collection of the debt.
Federal Management has an average debt recovery rate of 90% on all undisputed business debts.
As well as this, we are the only UK based debt collection agency that the Financial Conduct Authority regulate.
This, alongside our expertise and professionalism…
…means that our clients receive the best debt recovery possible.
If you are unsure of what to do if a debtor has absconded, speak to one of our friendly experts today.
Federal Management provides a completely free pre-action assessment.
A debt collection expert will look at your case and assess the viability of its recovery.
If we can recover it, we will do so.
If you have a debtor that has absconded, speak to Federal Management today for professional help.