There is no doubt that there are clear benefits in referring a matter to a third party for collection and it is also recognised that creditors maximise recovery if they outsource sooner rather than later.
With commercial collections we have seen a trend towards the appointment of one sole supplier for both collections and legal recoveries, moving away from Debt Collection Agencies whose commission rates are often more than the cost charged by solicitors. Creditors who also refer their pre legal collections to solicitors can often negotiate a better deal and spend less time administering their ledgers.
If your customers are ignoring reminders, it could be because they are waiting for a significant threat. If you refer an account to a firm of solicitors, rather than a debt collection agency, you are presenting yourself as a professional organisation that takes late payment seriously.
We can provide a bespoke process, incorporating both letters and telephone calls, to act as an extension to your own credit control.
We can: -
- Quickly make contact with the debtor
- Gather vital intelligence
- Help you decide whether a claim is worth pursuing
- Minimise your exposure to costs on those matters which are not worth pursuing
- Escalate appropriate cases in the recovery process with no loss of momentum
In addition, we can incorporate claims for late payment penalties either under the terms of the contract or the Late Payment of Commercial Debts (Interest) Act 1998.