Business Debt Recovery
All about Business Debt Recovery
It is an unfortunate fact of business life that from time to time you will be faced with having to recover debt from other businesses. Business debt recovery is the name for this process, and often the most effective way to ensure the full recovery of business debt is to engage a debt collection agency.
The precise role of the business debt collector varies according to the geographical location of the debt, and how it was incurred. Every country will have its own rules for the debt recovery process, but all reliable commercial debt collectors should offer some key services:
- The promotion of good relations between parties throughout the debt collection process
- Effective liaison with debtors wherever they are located
- A full assessment of the debtor’s financial situation
- Provide recommendations on the necessity of legal action
Debt recovery process
The management of commercial debts is about more than simply collecting debts from customers who are unwilling to pay. A professionally handled business debt collection process can also be an opportunity for building stronger relationships between you and your debtors while ensuring the recovery of debts without the need for expensive litigation.
As a specialist debt collection agency, we are able to support you throughout every stage of the debt collection process, dealing with every possible debt collection scenario from amicable debt recovery to formal legal action. Our process is guided by the best industry practice and follows these stages:
Stage one: Notification of non-payment
We make contact with your debtor, employing a structured strategy incorporating letters, phone calls or emails, according to which approach is the most appropriate.
Stage two: Evaluation of collection progress
Working both with you and your debtor, we design and implement an approach tailored to the situation. This can involve a payment plan designed to take account of the debtor’s financial situation, ongoing monitoring or, where appropriate, legal action.
Step three: Strategy Implementation
We implement the debt collection strategy. This may mean the negotiation of a debt repayment plan, action through the courts, or in some cases, liaising with the liquidators.
Step four: Reimbursement
You are reimbursed by your debtor. This can be repayment in full, or in stages.
What is the cost of the debt recovery process?
The costs involved in debt recovery will vary according to the case but are usually stated as a percentage of the total debt.
How long will it take to recover my debt?
The time taken to recover your debt will vary according to the circumstances. One useful rule of thumb is that the sooner you are able to identify the existence of a debt and bring it to the attention of your debt recovery agency, the quicker it can be recovered. This is due to the extra work involved in locating the paperwork associated with older debts. The speed of debt recovery will also depend on the debtor. Some debtors will be able to pay at first contact, but others may need a staged repayment plan while a small minority will have to go through a longer legal process.