Using A Debt Collection Agency vs Independently Collecting A Debt

Using A Debt Collection Agency vs Independently Collecting A Debt

Have you ever experienced a situation where you have lent money to someone and they are refusing to pay it back?

Do you have customers that are ignoring you when you ask them to pay you for your services?

There are many ways in which someone may try and get away with not paying you.

When this happens, you will understand how frustrating this can be.

Recovering money that someone owes you can be a challenging subject to tackle…

…and knowing how to conduct a successful recovery is vital.

Regardless of HOW you do this, the goal at the end is to ensure that you get this money back to you.

There are many options available for debt recovery in the UK, but which should you choose?

For example, one of the most common ways of this is to independently collect the debt.

This involves taking matters into their own hands and tracking down and confronting the debtor themselves.

Alongside this, instructing a professional debt collection agency is one of the most popular methods.

It is all well and good outlining the two best methods, but understanding which is the best one is of top priority.

In this article, our experts have put together guidance on which is the best option to choose for Commercial and Private debt collection.

Choosing the wrong method can be the difference between getting your money back or nothing at all.

How To Independently Collect A Debt

So many gravitate towards collecting a debt alone as they believe it is the fastest and cheapest way to do it.

It is understandable why so many use this method of recovery.

Although it is not, and never will be, the method with the highest recovery rate, it still works.

The option to collect a debt by yourself has been easier for businesses.

This is due to in-house credit control teams that chase payments that have been left unpaid.

Credit-controllers are trained to negotiate with those that owe money…

…which will result in the organisation getting paid and the debt is erased.

When a debtor refuses to pay even after negotiation, it is important to know where you can escalate this too.

Those who are private individuals will not have access to a credit-control team and will have to do this by themselves.

This can be a difficult situation for individuals and those who are self-employed, as this takes up a lot of time.

The time spent to learn how to recover a debt and then action this should be used to continue to grow your business.

Recovering a debt alone can also be a costly exercise which isn’t ideal when you are already owed money.

Not only this but if you take the wrong approach to recover your debt, this may be unlawful and you may get in trouble.

When a creditor starts to being too pushy, the debtor may become annoyed.

This could result in the authorities becoming involved.

Knowing the best and most lawful way of getting your money back can take a lot of time that you may not have.

It’s vital to remember that this method will stop you from working on beneficial business exercises.

As well as this, you may want to consider the effects it may have on your relationship with your debtor.

If someone owes you money, this can make you feel negative emotions such as stress or anxiety.

These may cause you to act confrontational when you communicate with your debtor.

Not only this, but debtors are notorious for trying to provoke those they owe money to.

This may result in an argument with your debtor, which will make it a lot less likely that your money is going to be paid.

Jeopardising the relationship with your debtor can be damaging to your business’s future.

You must do everything in your power to ensure you maintain your finances.

Although the option of collecting alone can be successful, it is better to instruct a debt collection agency.

Instructing A Professional Debt Collection Agency

When someone owes money to you or your business, there is one clear method that is best to use.

A specialist debt collection agency is the most trustworthy and hassle-free way of collecting money owed.

The main benefit of this method is that it allows individuals and businesses to focus on their day jobs…

…rather than having to take time out to try and recover these debts by themselves.

The way the debt collection process works is also fairly straightforward and requires no effort from your side at all.

The experts will get in contact with your debtor and tell that they owe money to you that needs to be paid.

All communications will be done so in a professional, calm and clear way, making sure to respect the relationship with your debtor.

At UK Debt Collection Bureau, we have a list of recommended Debt Collection agencies that are the best in the UK.

No matter where or who your debt has originated from, our partners can recover this.

These agencies operate the UK’s highest recovery rates of up to an average of 90% on all undisputed debts.

This will ensure that the service you are getting is the most affordable it can be which means you won’t be over-charged.

When a problem debtor owes you money, do not hesitate to choose this option straight away.

For Commercial Debt Collection, our recommended partner is Federal Management.

Federal Management is the only agency in the UK that is regulated by the Financial Conduct Authority (FCA).

For Private Debt Collection, we recommend using Frontline Collections.

Frontline Collections are accredited by the Credit Services Association.

They have also been awarded “Gold Preferred Supplier” status by the Independent Schools Association (ISA).

If you have a debt that is based overseas, choose Federal Management International.

All of the above have the following characteristics of a good debt collection agency:

• A large number of positive customer reviews
• High recovery rates
• Low commission rates
• A large team of experts, with regional offices to help across the UK
• Accreditations with industry organisations
• Polite and professional