Using A Business Debt Recovery Agency

Using A Business Debt Recovery Agency

Every business will need to look into debt recovery services eventually. Unfortunately, the trend of clients that do not pay their bills is almost a daily normality for companies in the UK.

Studies conducted for 2020 showed that a staggering four out of five small businesses was owed money from a client. In many cases, the business owner had to fund the business with their own money, just to keep it afloat. In other, more serious cases, the business was forced to close due to cash flow issues due to the effects of late payments.

Various options for enforcing the collection of owed money exist. It is often the best solution to instruct a business debt recovery agency.

In this article, we explain the benefits of using a business debt recovery agency. As well as this, we look at the various types and specialities each one has.

What to do When Owed Money – Setting up a Business to Business Debt Recovery Protocol

Many businesses are set up for starting a debt collection process in-house. For example, when a debt is first declared overdue, a dedicated credit control department will be tasked to chase the debtor. Quite often, this is done through the process of making phone calls and sending emails.

Other companies implement robust pre-action protocols, with payment terms and late payment interest charges. These provide a debtor with an incentive for paying on time. They can also often be a good way to stop bad debt before it occurs.

In some cases, this can be effective. Payment reminders or the threat of a service being cancelled can prompt the debtor to pay what they owe. However, there are always those debtors that will simply ignore any communications.

When this happens, hiring the services of a professional is always a cost effective and pragmatic decision.

Business Debt Recovery UK – Types of Agency

A business debt collection agency will often specialise in a specific industry sector. For example, Frontline Collections is regarded as the UK’s leading agency for recovering private schools debt.

Often, a business’ clients can either be other companies, or private individuals. In some cases, recovering a debt from an individual would need another type of debt collection agency. However, the vast majority of business debt collectors can enforce the collection of debt regardless of who the debtor is.

Likewise, Federal Management is known as the UK’s leading commercial debt collection agency. They focus on collecting business debts resulting from things such as unpaid invoices or client disputes.

As well as this, there are also international debt collection agencies that are experts at recovering business debt from overseas.

To summarise, regardless of who your client is or what industry sector you are in, a specialist solution is available. Finding and choosing from these agencies is another matter. This task often requires a great deal of time and research to ensure that the correct option is chosen.

Choosing the Right Business Debt Recovery Agency

With the number of debt collection agencies available, finding the right one for your business needs to be a careful decision.

The UK Debt Collection Bureau is the UK’s largest group of award-winning debt collection agencies. Each one of our members is a proven leader in their field of debt recovery.

Our service is completely free and open to anyone, both businesses and private individuals. By completing our quick and easy to use web form, you can begin finding the best recovery agency for you.

This service saves hours worth of searching manually and only recommends the agencies in the UK that are proven and effective.

Using a Business Debt Recovery Agency – Frequently Asked Questions