Debt Collection Guide for Businesses

Owed money by a company? A guide to efficient Debt Collection for businesses

There are many challenges to running a business and one of the toughest is dealing with non-payment of debt, particularly when your debtor is a company.

This all too common situation can have a number of causes. It could be simple non-payment of your invoices or a refund for a faulty product or service. Maybe you are waiting for an insurance payout. There are many scenarios that can lead to you needing to chase a company for payment, but many businesses lack knowledge on how to go about debt recovery efficiently.

Proving the debt

As any debt recovery agency will tell you, the first step is being able to prove that you are owed the money. You need to be able to show the amount of the debt, what it was for and provide details of the written agreement or contract covering the issue of debt. This evidence could involve proof of purchase if the debt is for a service or goods, or a copy of an invoice and any relevant credit agreements signed by the debtor.

First steps

If you are owed money by a company there are initial steps that you can take yourself. You can, for instance, write to them with a formal request for payment. You can follow this up with a phone call. It is important at all times to remain calm and professional throughout this process and to keep a record of all steps you take.

Non-communication

Sometimes there can be a lack of communication on the debtor’s part. This can be frustrating but again it is important to take a professional, calm approach. Try to establish whether there is a reason for the lack of communication. This can include the person with responsibility for debt issues being absent. On the other hand, if it appears that the non-communication is a payment evasion tactic, it could be time to escalate your efforts.

Timescales

When chasing a debt, you should ensure that you don’t let the situation drift, while taking the necessary recovery steps calmly. To help you get a sense of the time scales involved in reclaiming a debt, the Limitation Act 1980 states that you have six years to collect a debt.

Reasons for delays

Non-payment of debt occurs for a variety of reasons. Perhaps the company involved is having cash flow issues of their own. They may even have gone into liquidation, something that you can check for free by looking at the Companies House register. In some cases, there may be a dispute about the amount of debt. Modern debt recovery agencies understand that there is no one-size-fits-all approach to business debt, and when chasing up debt you should adopt the appropriate approach for the circumstances.

If you need help

If all of your efforts to solve the situation have failed, it can be a good idea to seek the assistance of a professional debt recovery agency. A reputable debt collection firm will be able to assess the situation and secure repayment in the most effective and efficient way possible and will do so on a no-win, no-fee basis. Get in touch with us today and find out how we can help you collect money owed to you by a company quickly and painlessly.

For more information on UK Debt Collection or International Debt Collection, please check our website. Credit Limits International is also a member of the TCM Group.