Credit Control & Debt Collection
We appreciate that within your busy work schedule debt recovery will not be high up on your important list of things to do. Sometimes your company may lack the time or even sufficient personnel to proactively chase your late payers which can then potentially have a knock on effect to your cash flow. Our Receivables Management was established exactly for that reason; to be an extension of your business thus saving you valuable time and money by utilising our debt recovery services.
We also understand that maintaining client relations is paramount for every business and therefore with our professional debt recovery services, we aim to resolve matters quickly and amicably without causing any detriment to your good reputation.
If your accounts remain unpaid we can seamlessly escalate them by using our debt recovery services. By providing the continuity and our effective experience into your process, your cash flow problems will be a thing of the past.
Our debt recovery services will be tailored to your specifications, we will give you the options and together we can agree how to pursue your debtors.
Our Receivables Management can manage your accounts receivable function fully, partly, or on a one off project basis. Together we can determine what part and at which stage you would like to outsource your accounts receivable process. Our commission rate can be as low as 5%, of any monies recovered, depending at which stage the account is passed over to us. The sooner it is passed to us, the higher the collection rate and therefore our commission being lower. It’s as simple as that.
Legal & Insolvency
In the unfortunate event that payment is not forthcoming during the debt recovery stage then taking legal or insolvency action may be what it takes to get your debts paid. Ultimately this is a choice you need to make whilst taking into account the other options we have given you.
With over 15 years of experience in providing debt recovery services we can provide you with our recommendation for the best course of action and our reasons why.
If you have decided you want to take the matter further because you simply want what is rightfully yours or if it is a matter of principal then depending on the circumstances there are two routes you can go down. 1) Issuing a claim in the County / High Court 2) Insolvency proceedings in accordance with the Insolvency Act 1986. Insolvency proceedings can only be issued if the debt is not disputed or you have already obtained a county court judgment and it is also subject to a monetary threshold (£750 for companies and £5,000 for individuals).
No one wants a county court judgment against them or being wound up or made bankrupt because this can have severe financial repercussions. Both have their pro’s and con’s but most of all it is choosing the right course of action that will determine whether you get paid or not and that’s where our proven track record of recovering over £30 million pounds in the last 5 years is testament to what we do best.
Together with our professional partners we will give you the support and service you expect to receive as a valued client.
Please also see our Enforcement section for the various types of action you can take.
Enforcement
If you have already obtained a judgment against your debtor but they still haven’t paid we can still help you to recover your debt. By combining our debt recovery services and utilising our professional partners we will look to get back what is rightfully yours.
Once all debt recovery efforts have been exhausted we will then review the file and provide you with our findings along with our recommended course of action.
You have several options available to you but again it is all about choosing the right one for your circumstances. We can help you decide by drawing upon our previous debt recovery experience and knowing what works where…
The following types of enforcement may be available to you*:
Warrant of Control – Instructing a county court bailiff to recover sufficient goods to cover the value of your judgment debt.
Writ of Control – Similar to the Warrant of Control but utilising High Court Enforcement Officers instead. High Court Enforcement Officers tend to have a higher success rate than County Court Bailiffs.
Attachment of Earnings – If your debtor is an individual and you know who their employer is, you can make an application to the court to order the employer to deduct monies from the debtor’s wages to pay you.
Statutory Demand – A legal document that once served effectively gives the debtor 21 days to pay the full amount owed or come to an arrangement to your satisfaction. Should the debtor fail to comply with the demand after 21 days have elapsed then you are at liberty to issue a winding up or bankruptcy petition.
Winding Up or Bankruptcy Petition – If the debtor is wound up or made bankrupt this effectively means that an Official Receiver or Trustee will be appointed to liquidate the debtor’s assets and pay creditors out of any funds raised.
Charging Order – If you know of any property the debtor may own then you can make an application to the court to allow you to place a charge on their property, similar to a mortgage. Once the charge is registered you are considered a secured creditor and you have priority over unsecured creditors in the event of the property being sold or the debtor being wound up or made bankrupt. Consideration should be given to prior charges and potential equity.
Order for Sale – Once a Charging Order is registered you can apply to the court for an Order for Sale which forces the sale of the property.
Order to Obtain Information – The debtor must attend court in order to be questioned about their means and any other relevant matter to enable you to enforce your judgment. If the debtor does not comply with the order given by the court then they may be imprisoned for contempt.
Third Party Debt Order – If you know the debtors bank details, (usually account number and sort code) an application can be made to the court to freeze the debtors bank account/s. Any money in the account can then be paid to you to clear the debt. A Third Party Debt Order can also be sent to anyone who owes the debtor money. Consideration should be given to the timing of the order to ensure sufficient funds are in the account.