What a debt collection agency can’t do for your business…
For most of you people should know about is that a debt recovery firm can’t really force a defaulter to pay the bad debt or clear the debt when the debtors are having liquidation of their companies or when they are facing bankruptcy. The most important thing what they can do is to make sure that whatever the defaulter states is actually the real issue and not just simply a delay tactic by their end. There are a lot of cases where a business continues to generate full revenue despite all the indications and notifications of ceased trading and it is part of the debt collectors remit to find all of this for you. In a situation like this, your debt collection firm can really try to establish if there is any money to offset against the total debt owed to your business.
Debt collection specialists will try to mediate a claim if your bad debt is disputed but you must provide all the details of every single correspondence and conversations between all the parties at the outset. When the balanced invoice remains in unresolved dispute then your debt recovery firm can’t legally force anyone to pay I mean legally it shouldn’t be done. There is however one option of amicable mediation or simple a legal action, which must and which should always be weighed up and should be considered very carefully just to avoid the risk of throwing all the good money after bad. Your debt collection firm or agency should be able to advise you on the best option to avail as suitable for the current situation.
As per the under 1980 limitation Act Debt Collector cannot pursue for a debt which is six or more than six years old, as well as if the debtor is not accepting to own the money. However, if the debtor has either made a part payment or is still in contact regarding the Un-Paid Invoice than debt can be chased for any unspecified time.
Those who recover debt are not at all Solicitor & they cannot give any legal advice for any case. Many Debt recovery agents are connected with Solicitors and suggest litigation services if debt collection was ineffective normally.
What Debt recovery agencies can Do for Business to Business claims
Collection agencies track the contact missing and take action accordingly. They seek as much information to search the old contact details, communication as well as bounced cheques etc. And then these Collection agencies will look for debtors through any possible means.
National Debt Collection agencies can share their expertise from debt recovery all over the country. They know how to settle the claim amounts by debtors through communication. In genuine cases debt collectors would work with defaulter and ensure that mutually agreed installment plans are set and followed. Basically they know how and what works.
Debt collector save time and money.
It’s very time consuming job to follow the debtors. Just to establish a contact one need to be patient. By outsourcing the pending/unpaid invoices to debt collection agencies one can be more productive to his work where the same time could have been consumed on following up with debtors on phone, emails or writing letters. Where the collection agents work on NO WIN NO FEE basis so you only need to pay once you get you claim amount recovered.