Most of us have more experience of being a debtor than of being a creditor, and if you’re new to debt recovery, it can seem daunting – after all, you might think it’s a time-consuming and costly process.
But that’s not the whole truth. It can be time-consuming to successfully pursue a debt until it gets paid in full, but it doesn’t have to be time-consuming for you.
When you appoint a debt recovery agency to chase an unpaid invoice on your behalf, you take yourself out of the process, leaving you free to focus on other things while your agent puts in however much time and effort is needed.
Often any fees charged will be fixed at a percentage of the debt reclaimed, meaning even if it takes a long time to get your money back, you still won’t have to pay any extra for the leg work put in.
Professional debt recovery agents will of course aim to minimise the time taken – not least to make the most of their fee, but also to get your money into your account where it belongs as quickly as possible.
And these days it is often possible to charge any debt recovery costs to the debtor, so you’re not left out of pocket at all (you might even profit on the deal if you add interest to the amount owed).
Just to be clear on the basics, debt recovery:
- is chasing an overdue payment.
- is not chasing a payment that is not yet overdue (although sending out a reminder can be good credit control practice).
- is pursuing a debtor who is making excuses not to pay.
- is not pursuing an individual or company with a legitimate reason to withhold payment (although again, you may be able to resolve the dispute through other means).
- is pursuing a debtor with the means to pay you – especially if they are on the verge of insolvency, as prompt action can mean the difference between getting paid, and finding yourself in a sea of unpaid creditors.
- is not pursuing a debtor whose obligation to pay you has already been erased via formal insolvency proceedings – if this has happened, it’s already too late.
In short, effective debt recovery is prompt action on invoices as soon as they become overdue, particularly in the case of debtors who you think might be about to declare themselves insolvent.
Call 0808 274 6305 to talk to a member of our team about anything related to debt recovery.