Third-party debt collection is all about money, and rightfully so – when you are not paid money you are owed, it is only right that you should pursue for settlement of the account.
But there are several benefits to third-party debt collection that make it a preferable option to simply pursuing people for payment yourself.
Fundamental among these is the old adage that ‘time is money’ – and getting somebody else to chase your debts for you can prevent you from losing earnings due to spending time chasing them yourself.
Simply having somebody else’s name on the letterhead can have an impact too, as it’s much easier for a non-paying client to ignore repeated requests for payment from you, than it is for them to ignore letters arriving from a debt collector.
Knowing Your Rights
We always say that knowing your rights is important – and as a third-party provider, it is part of our job to ensure we apply all of the appropriate sanctions to your overdue invoices, and keep up with changes in the law.
For example, since early 2013, UK law regarding late payments has specifically included the right to claim reasonable debt collection costs from the debtor, allowing them to be added to the amount they owe.
Combined with fixed penalty fees for overdue invoices and statutory interest based on how overdue the final settlement is, this can make it even more lucrative to pursue a payment than has historically been the case.
We can chase debts even up to several years after the original non-payment, potentially giving your cashflow a significant boost – so whether you have client debts that are old or new, we would urge you to turn them over to us to see how much we might be able to claim on your behalf.