Debt Collection Case Study

Modern Debt Collection: A Case Study


Many businesses make the mistake of assuming that debt collection is purely about enforcing the payment of debt. That may have been the case in the past, but modern debt collection agencies have a more constructive and holistic role to play. These days, debt collection is often about helping debtors to solve their debt issues, leading to more productive and rewarding business relationships.

Our work often involves much more than simply recovering debts. We work with clients on both sides of the debt collection agency to ensure the most effective debt recovery outcome. One of our recent cases provides a good illustration of the service that a reputable debt agency can provide.


The ongoing COVID-19 pandemic has been disastrous for many businesses. Across all sectors of the economy, employers and entrepreneurs have been forced to cope with a sudden and dramatic loss of business, while costs remain unchanged. Inevitably, this has put many businesses under serious pressure, unable to pay employees and sometimes struggling to meet their debt arrangements.

We recently dealt with a company in that unfortunate situation. In this case, it was a private art gallery operator, which had incurred a £2,000 debt over a three-month period, from March to June this year, at the height of the pandemic shutdown. The gallery had shut down completely, and in their communications, the company made it clear that they were operating on zero income.


Bearing in mind the context of the problem, which was obviously the ongoing pandemic shutdown, it was important for us to be aware of what was possible in terms of debt repayment and within what timescale. So our initial conversation was focused on establishing the company’s situation.

At the initial stage, we are focused on understanding the issues and providing help and advice where appropriate. Through enquiries, we were able to establish that although they were late in filing their taxes, which can sometimes be a bad sign, in this case, they had been granted an extension to file taxes by June. We were also able to advise the company of the government help available to businesses affected by the pandemic, in the form of business loans, of which they had been unaware.


Having gained a clear picture of the company’s situation, established that they were in genuine financial difficulties and offered appropriate advice, we were then able to move forward to obtain a firm commitment from them on a timescale for repayment.

In this case, the debtor made a commitment to repay the outstanding amount by a set time and was able to obtain a government loan, giving them the financial breathing space needed to meet their debt obligations. The result was that the debt was repaid in full and the relationship between our client and the debtor was maintained. In fact, in their communication with us, the debtor indicated that they were grateful for our advice and the way we conducted the debt collection process:

“I owe this to your kind advice. This gives me huge relief in these unprecedented times.”

Art Gallery Director


Effective Debt Collection

As this case underlines, debt collection these days is about more than simply enforcing payment. We focus on providing the most efficient and effective methods of debt recovery that will not only maximise the amount of money recovered but also ensure, where possible, that both client and debtor retain a long term business. Get in touch with us today to find out more about how we can help you to recover your debts with our reputable and effective modern debt collection service.


CLI is a specialist Debt Recovery Agency in debt collection and international debt collection with over 10 years of successful support to businesses.