Choosing a Debt Collection Agency

Choosing a Debt Collection Agency


Chris Leslie, the current Chief Executive of the Credit Services Association (CSA), and more famously known for being the Former Labour shadow chancellor, has written an article on a key topic: how to find a debt collection agency to chase unpaid invoices”. He reminds creditors that the CSA Membership is a good place to start. Below a summary of the points to keep in mind when choosing a Debt Collection Agency. For more information, you can also read his article.

The issue of how to collect outstanding debts will be a familiar one to most business owners. From time to time, all businesses face circumstances in which repayment of a debt is delayed, but these debt recovery problems have been exacerbated during the COVID-19 crisis, with millions of us affected by uncertainty, loss of business and cash flow issues.

No business can afford to overlook outstanding debts, so when your own efforts to recover your debt have been exhausted, one option is to consider choosing a debt collection agency.

Check Credentials

Maintaining good relationships with your customers is essential, particularly in such difficult times, and you want to be sure that a debt recovery process does not jeopardise your future relationships with a customer. To ensure that debt is recovered in a way that does not put your business relationships at risk, it is advisable to work with accredited debt recovery agents who are members of the widely respected Credit Services Association (CSA).

Agencies like ours, which hold a CSA membership, act for the public sector, utility companies, mail order and online sales companies recovering consumer debts. But CSA members are also responsible for managing over 750,000 commercial debt recovery accounts, and every year, CSA debt collection agencies successfully recover over £400 million, much of that figure on behalf of small businesses.


Modern and Flexible

The advantage of using a CSA member to recover your debt is that they are bound by the CSA code of practice. They will fully consider the customer’s circumstances and are committed to approaching debt recovery in a flexible and empathetic way. This can include negotiating with the customer to agree to a practical settlement and even directing customers to appropriate advice sources.

This flexible approach is important as there may be many reasons to explain the non-payment of a debt. In some cases, a customer may be unable to pay, perhaps because they have had to furlough their staff, or are waiting to receive a loan payment. In these cases, the issue is a matter of timing and arranging a realistic repayment schedule. Of course, there may be situations when there is no good reason for non-payment and CSA members are fully trained in navigating these scenarios to ensure that your debt is successfully and efficiently recovered.


No Win, No Fee

Transparency is important when you work with a debt recovery agency. CSA members are committed to providing clarity in how they work, and the associated costs. Where possible, it is always a good option to consider agencies that operate on a ‘no win, no fee’ basis, which charge commission on recovered debt, and in all cases, opt for an agency that is fully transparent about how it operates and how it charges the businesses it works with.


Recommendation and Speciality

Another important consideration in finding the right debt collection agency is to look for recommended operators. Speak to other companies who have worked with a particular agency and look out for testimonies. It can also be an advantage to find an agency that has experience within your sector, as they will be familiar with the particular demands and practicalities faced by those seeking to recover debt in your part of the economy.


Don’t Delay!

Perhaps the most important advice when facing an overdue payment is not to delay. The sooner you act on debt recovery, the greater your chances of ensuring full and speedy payment. As members of the CSA, we are a reputable and experienced debt recovery agency, trained in the most effective and modern methods of debt recovery. Get in touch with us today to find out how we can help you to recover your debt while maintaining important business relationships with your customers.


For more information on UK Debt Collection or International Debt Collection, please check our website