Debt Collection Agency vs Solicitors

Debt Collection Agency Vs Solicitors

Regardless of who you are, who you work for or what sector you work in, anyone can be a victim of an unpaid debt. Sooner or later, you or your organisation will be hit with a customer or client who will not pay for works or services which you have carried out. This can put a great deal of pressure on you and your cash flow.

It is important to remember that when you are faced with a situation such as this, to never try to recover the debt by yourself. It pays to know what to do in the event of having money that is owed to you.

There are, however, various ways of combatting these issues before they start such as having a regularly updated and modern Credit Control Process.

The difference between having an effective or ineffective process can prove disastrous and can lead to ending up in circumstances where you find that you have customers or clients not paying.

We recommend that you always act as quickly as you can when you are faced with problem debtors.

Over the last few years, the traditional ways of having debts collected such as the use of Solicitors has had its light stolen by the increased use of Debt Collection Agencies.

The question still remains, however, is it better to use a Debt Collection Agency or a Solicitor to undertake the collection of money owed to you?

Our team of debt recovery experts have put together this article to outline the differences of using a Debt Collection Agency or a Solicitor to recover money that is owed to you.

At the UK Debt Collection Bureau, we provide a list of trusted Debt Collection Agencies that provide a professional, pragmatic and pro-active service should you need it.

Debt Collection Agency vs Debt Collection Solicitors – Who To Choose?

It is extremely normal to think of Solicitors as the first port of call when you are faced with customers or clients not paying. This is due to the fact that they have been a traditional method for collecting debts for many years.

Solicitors became popular as debt collection providers due to the fact that their services were usually the only option at the time.

There are many disadvantages to using Solicitors to recover a debt, which are in-turn reasons as to why Debt Collection Agencies have become so popular.

One of the main issues with using Solicitors is that they are notoriously expensive. It is extremely common for them to charge upfront fees and if they happen to recover any money at all, they will add a ridiculously high percentage on top.

This commission rate that you will pay can sometimes be extremely high.

It is worth noting the potential consequences of this high cost. As the creditor’s cash flow has already been impacted due to the money they are owed, any fees that are added on top can affect this even more.

By comparison, Debt Collection Agencies services are cost-effective and highly efficient when it comes to recovering a debt.

With our award-winning partners, this rate is only added upon the SUCCESSFUL collection of a debt, minimising the cost dramatically.

Not only can Solicitors cost a lot to use, but they are known to take a long time to produce ANY form of result, whether it be a positive or negative one.

Also, communication is an issue, with Law Firms are known for being slow to respond, with clients feeling like they need to do a lot of chasing to understand exactly how their case is progressing. Our debt collection agency partners on the other hand, have 24/7 online access for every client, allowing for comprehensive updates whenever they are needed.

If you were to use a Debt Collection Agency, as one of our award-winning partners, they boast 90% recovery rates on all undisputed business debts whilst providing a diligent, progressive and quality service.

Using a Debt Collection Agency ensures a fast and efficient collection of your money and all enquiries are actioned within 24 hours. In some circumstances in the past, debts have been recovered in as little as two weeks – a drop in the ocean time-wise compared to a solicitor.

It is worth noting that when it comes to recovering money from a customer or client, ensuring a professional manner is imperative to keeping the relationship between parties the same. When using the services of a Debt Collection Agency, the relationship between the client and customer is not jeopardised. This will allow for future business opportunities which are especially important for self-employed or freelance professionals.

As well as the points made in this article, client satisfaction and feedback indicate that the benefits of using a Debt Collection Agency certainly outweigh the benefits of using Solicitors.

It is now important, based on your specific requirements, to know who and where to go to ensure an efficient and effective collection of your debt.

Debt Collection Agency – Who Should Recover Your Debt?

There is a large list of reasons to choose one of our trusted partners to recover your debt, including:

• Expert solutions for all types of debt collection.
• Highest recovery rates for all undisputed debts.
• Local, national and international coverage.
• Award-winning debt collection solutions.
• Cost effective, professional and pro-active.

Depending on your specific situation, you will need to opt for either a Commercial, Private or International Debt Collection Agency.

For commercial Debt Collection requirements, we recommend Federal Management.

For Private and International Debt Collection requirements, we recommend Frontline Collections.

If you need help with any of the above, please get in contact with our team of experts at 0333 043 4417. A debt collection expert will contact you within 1 working hour with the best collection agency options.