Author: Taurus Collections

Typical collection agency fees

3 Facts You Need to Know About Typical Collection Agency Fees

With recent unprecedented times putting businesses around the world severely at risk, typical collection agency fees might not be the first thing a company should look at when they are struggling to keep their doors open for business. 

But when looking at collecting payment of invoices from late payers, typical collection agency fees can actually be the difference between staying afloat and the slippery slide to insolvency before your company’s time.

Typical collection agency fees

Some collection agency fees can be misleading & complicated

So we have put together some key facts to consider about typical collection agency fees, in order to give you some insight. This could influence how you choose which company to help you keep a positive cashflow in place:

1. “No Win – No Fee” doesn’t always mean No Win – No Fee:

Many collection agencies will advertise very low fees to collect your debt. But this can often be a road to more expensive legal charges further down the line.  Often only 1 letter with little commitment to collect your debt is the course of action they will take.  It is always best to ask your collection agency exactly what the process is for collection, and how they intend to proceed if the debtor doesn’t pay at No Win – No Fee stage.

2. The lower the commission doesn’t mean you will get the best service:

You pay for what you get!  Typical collection agency fees can be very low in order to attract enquiries, but the quality of the work may not match their marketing efforts.  Be wary of very low commission rates as they can often be too good to be true. You should always check out testimonial pages for proof they have a solid track record of collections in industry sectors similar to yours.

3. Recovery of costs & interest are not always included:

Collection agencies should be doing their very best to recover extra costs involved in the collection of a debt. You should always check that recovery of costs is a priority if you are considering typical collection agency fees. Costs and interest are recoverable by UK law and every effort should be made to get you back to a No Cost situation. The debtor should always be covering your costs for debt recovery.

So we hope the above facts about typical collection agency fees are helpful as your business looks to recover and prosper from the pandemic sweeping the globe in 2020. 

Typical collection agency fees are important to consider

Our feeling is that businesses should always prioritise cashflow. Companies who are 100% focused on collecting debts in the next few months will prosper. We believe many can grow into a stronger, more leaner company in the months and years to come.

If you would like to speak to one of our debt collection experts about typical collection agency fees to help your business through the pandemic in 2020, please don’t hesitate to call us today on 01332 565 350 or email

Business debt collectors

When Business Debt Collectors Meet COVID-19, This Is What They Do

Cash flow and business debt collectors have always played an important part in the profitable running of a business, but never more so than now. 

We are getting a number of calls from clients asking whether they should be using business debt collectors to pursue debtors on their behalf, in the current climate.  Our short answer is ‘yes’, but it needs to be done carefully.  Many businesses are facing very difficult times with some going into ‘mothballs’, and others looking at a seriously decreased income for the duration of the crisis.
In these unprecedented times of the COVID-19 pandemic, you need to use business debt collectors that don’t simply wade in with a standard procedure with little thought to the reality of the local situation.  It may be sensible for example, to give debtors more time to respond to letters and other issues (perhaps allowing 14 days instead of 7 days). 

Don’t let Coronavirus destroy your business

Likewise, you may need to consider whether to send letter correspondence at all – if, for example, factory premises are closed, then email could be the best – and only – route to achieve a response (we always find this anyway!)
Other options on the table, and we believe one that should always be attempted, is that of telephone contact with debtors.  Business Debt Collectors should be using this as the primary method of establishing contact and resolving late payment in the current situation.  By establishing contact with your debtors, collection agents are able to undertake a realistic and professional assessment of their situation and their chances of actually making payment of the debt.  We have a fantastic record of recovering money by telephone calls – our team of business debt collectors can build rapport, and yet maintain a firm approach on your behalf.
We often help our clients with one-off debts, or large portfolios. In fact for many of our clients, we work alongside internal credit control teams, being called on for advice and assistance when required.

There is still some great resources out there of how to do business during a pandemic, so we shouldn’t lose hope in these trying times.
At the end of the day, if you are owed money for work you have done or goods you have supplied, then you should rightfully be paid.  Business debt collectors such as ourselves, can help you achieve this with less hassle, and in quicker time.  For the foreseeable future debt collection won’t be as straightforward as it was pre-coronavirus, and you need to speak to a firm who understands business, and just as importantly acts quickly and concisely to achieve the best result possible for you.

If you would like to speak to one of our business debt collectors to collect late payments and to help your business through the pandemic in 2020, please don’t hesitate to call us 01332 565 350 or email

Credit Control Tips

[INFOGRAPH] Succeed With Credit Control Tips In 24 Hours Or Your Money Back

Okay, that’s a bit of an exagerrated headline we admit, but you get our point.  Our infograph shows just how simple effective credit control is if you follow a process, and it can happen quickly, making debt collection for your business an integral part of your processes.

Your credit control team should know the procedures in place, but it is you as the business owner that needs to ensure they have a consistent approach

Debt collection can cripple a business, and particularly in these uncertain times, cash is king more than ever. But you need to act fast! Thats why once you start using these essential credit control tips you will start seeing results in 24 hrs.

Prioritise cash collection using these credit control tips and keep your outlook positive over the coming difficult few months.

If you would like to speak to one of our agents about how to implement the effective credit control tips, to help your business through the pandemic in 2020, please don’t hesitate to call us 01332 565 350 or email


Tips on how your business can survive Coronavirus

Corona Virus is clearly one of the biggest threats to organizations any of us will ever likely face in our lifetimes. None of us can say we were expecting it, or prepared for it. The coming weeks and months will be a bumpy ride, so we have put together some top tips right now for giving you and your business a greater possibility of surviving such an unexpected crisis.

Prioritise cash. Try not to stress over profits, turnover, or new sales, just cash matters now.  Search for every opportunity to hold money inside the business; examine your outgoings carefully and cut any unnecessary expenses.  Tighten your credit control processes, and collect all invoices beyond 30 days. See our previous article for expert tips on credit control, or for more detail check out The Chapter Technique. You need to be cash forecasting for 3-6 months, and look at this on a daily basis.

Look closely at all your outgoings – what do you need for the business to function, and what don’t you need? Reduce or cut totally what you don’t need, including your own pay-packet. When cutting, be brutal, and do it early, so that in the long run in hindsight, you won’t kicking yourself or regretting anything. Focus on the assets in your business that are the most valuable.

Don’t let this virus infect your business! Together we can beat it.

Timeline planning – Treat the COVID-19 crisis as one that will last 3-6 months. Produce short and medium term nett & gross income estimates and discuss openly with your staff and colleagues and get their assurances that they will do their very best to help your business survive!

Remember you are not the only one. Everybody is in just about the same situation. Do whatever it takes not to feel overwhelmed. Try not to freeze. Relax. Make short strides, little steps, not enormous jumps. Converse with and watch what others do in and outside of your industry. Take backing and thoughts for managing this emergency from anyplace and wherever you can, nobody has the complete answer. Ask people openly for advice, particularly customers, colleagues, friends and relatives.  What are other people doing?   

Ask yourself, what will it take to close this business down, and which of my rivals will be able to keep trading and why? Ask yourself what you can change rapidly, and how to be that survivor. Be intense. Search out better approaches for working. Try not to keep hold of the ‘old’ methods for getting things done. Put each alternative on the table. Be imaginative and adaptable. What ‘new’ technologies would you be able to utilize?

Your staff.   Perhaps look at part-time options for staff, whilst following Public Health England guidance as a base, decide who is required for those parts of the business that are basic to its endurance.   Can staff work from home?  Make a general arrangement which sees expanded collaboration, work and information being shared, making the business more grounded and less dependent on certain key individuals. Trust your staff and give them additional duties where possible. If you help your staff now, they will reward you for it later when you need them.

Communicate more – talk to everybody who is critical to your business: your clients, your suppliers, your staff, your funders. Don’t forget that they are also are presumably encountering the same problems, and will no doubt be making comparable, frequently difficult, choices. Try & empathise with them and be straightforward, open and practical.

Grab all the help you can get. HMRC have been advised by the government to help organizations affected by COVID-19. A hotline has been set up: 0800 015 9559. Use it.  Government grants and Loan schemes will be swinging into action in a matter of days.  Take advantage.

If you are struggling to get to grips with cash collection in your business, now is more important than ever to tighten your procedures and collect all invoices over 30 days old.  Do not leave it too late because many businesses will be failing over the coming 3-6 months and you need to make sure you are at the top of the pile to get paid.  Call us on 01332 565 350 or email  to see how we can help you collect cash for your business survival.

For more info, here are some very good related articles on COVID-19 help from around the web:

How to collect a debt from a customer

There’s Never Been A More Important Time Know How To Collect A Debt From A Customer

If you are wondering how to collect a debt from a customer (and let’s face it all business owners should sit up and take note of this), we have put together a simple step-by-step guide on the most effective strategy to maximising your collection efforts, and thus increasing cashflow for your business.

How to collect a debt from a customer

Don’t let unpaid invoices get on top of you!

Remember cash is king, and if you are not applying certain techniques and learning tried and tested methods of how to collect a debt from a customer, then you company will struggle to survive, and may see a slide to insolvency.  This is what we see in the most extreme cases, so its imperative that you implement strategies into your credit control process that will see results quickly and without wasting time.

(TIP: you do not want to be simply chasing invoices over and over, with little or no results).

How to collect a debt from a customer

So let’s get to it! Here are 3 steps to maximising your efforts when understanding how to collect a debt from a customer:

1. Invoices

This is where it all starts.  Make them clear, concise and crucially make sure they include details of how to pay you! Sort code, acc number, tel. number to pay by credit card, paypal ID, address to send cheque to.  Remember an invoice is a “notice to pay”, so you should make it clear that it needs to be paid.

2. Chasing

Schedule calls to your customers “at least” every 7 days.  Send a minimum of 2 letters and call 2 times before ever considering issuing legal proceedings through a solicitor, or passing it to 3rd party debt collectors.  Your customers will appreciate being reminded to pay as often Accounts Dept can get bogged down, and they only pay when they are chased.  You must get your debt to the top of the pile!

3. Escalation

Never delay action on a late invoice past 50 days.  If you have had no response by this point as in-house collection of debt, you should quickly pass to legal dept or 3rd party for collection.  Timing is everything and the customer may have serious financial issues or be closing down, so it is important to move fast.

So there you have it, a 3-step plan to help you learn how to collect a debt from a customer, which will put your company in the best possible financial position when it comes to maximising debt collection efforts.

How to collect a debt from a customer

You will get paid if you do the right things, consistently enough!

Drill this strategy into your credit control team!  Take it from us: if your company doesn’t have a strategy for debt collection and escalation, then your company may face a downward slide to insolvency.  We see it so many times, but with care and good management your company can prosper. 

Remember: timely collection of debts are the oxygen of any business!

If you would like to speak to one of our agents about how to collect a debt from a customer, to help your business prosper in 2020, please don’t hesitate to call us 01332 565 350 or email, or use our Contact Us form.

using a collection agency to collect debt

Secrets to using a collection agency to collect debt

Many of our new clients who have been using a collection agency to collect debt in the past, often ask us why we are better than other agencies, and what our secret is.  Our answer is always the same in that our number 1 priority is to have the clients best interests at heart, and to recover as much of the debt as possible within as short a time as possible!

Its not rocket science if you are using a collection agency to collect debt. Yet many businesses fail to see the benefits and will continue to delay and delay, thinking they will eventually get paid, but often don’t for months on end (often years!). 

The message to debtors from our side is simple, either pay us within 7 days, or the matter will be moved to a legal process. The debt will then increase substantially incurring legal, compensation and statutory interest costs on top.  No-one wants that, and if your debtor is a “can’t payer” we can find a solution quickly.  If they are a “won’t payer”, then we can negotiate a settlement often within 3 months.

Preparation is the key to timely collections

It is these small procedural steps that you need to consider when using a collection agency to collect debt, making sure they are meticulous, prudent and firm in their approach to your customers.

Secrets to using a collection agency to collect debt

Even the government want you to get paid on time!

So we are here to help: here is a list of 3 procedures that you should be taking from your side to maximise chances of collection before you consider using a collection agency to collect debt:

  • Communicate: have you done everything to correspond with the debtor, in the right timeline?  Are they responsive?  Have you spoken to them and found out if there is a specific reason for non-payment?  If they are simply unresponsive, then you may want to try and escalation process.
  • Provide all docs:  does your customer have a copy of the invoice?  The number 1 reason for non-payment in business is that the debtor doesn’t have a copy of the invoice.  Make sure you email a copy of the invoice on day 1 of the collection process. Way before you ever consider using a collection agency to collect debt
  • Iron out disputes: another major reason for non-payment is a dispute with the creditor. You must ensure all avenues of negotiation are pursued before embarking on expensive court action.  If a matter goes to court and it is disputed, the costs of litigation can often outweigh the debt. This should be avoided at all costs.

Don’t delay debt collection

So we hope these tips can put you in good stead, if you are considering using a collection agency to collect debt.

There are many effective collection agencies operating in the UK, but you should always do the groundwork. Then you will have peace of mind that you have done everything you can to resolve the situation, and the debtor has been give chance to pay directly.

If you are struggling with finding a collection agency to collect debt and want to find debt collectors that can be trusted,  please don’t hesitate to email us Or, give us a call on 01332 565 350 for a no obligation assessment of how we can help you improve your cashflow and debt collection rates.

Debt recovery for small business

Do You Struggle With Debt Recovery for Small Business?

When you first send out an invoice to a customer, the last thing on your mind is debt recovery and what you will do to collect it.  In fact, as a small business, debt recovery is probably the most important thing you should consider, and can often be the difference between a long and successful business, and a very short-lived, insolvent one.

The key to debt recovery for small business is really to have a very simple system in place for when things go bad.  After all, plenty of customers will pay on time, or certainly within an acceptable timeframe for your cashflow to be sustainable and healthy.  So you need to prepare for the worst case scenario for the small percent that don’t pay on time.

Timing is everything

So our advice would be for you to consider a credit policy for your small business if you are going to be successful!   Luckily for you, we have put together 3 top tips to keep your small business on top of debt recovery and prosper in 2020:

  • Be organised – make sure, once the invoice is sent that you are keeping track of it! Monitor the time it takes for the invoice to become outstanding. In the industry this is called DSO (Days Sales Outstanding).  Once an invoice hits 30 days, you should start increasing the chasing of the invoice. Then if after 45 days the invoice is still not paid, you should send a 7-day letter. This is the final demand which can often do the trick.
  • Be clear – even before you do business with a customer, emphasise the need for timely payment.  Mention it in your telephone conversations.  Mention it in your email to them when you send them the invoice.  And put it in BIG BOLD letters on your invoices.  This just makes you look like a well-oiled operation and actually can improve your customers first impression – which is a good thing!  This pre-emptive action reduces the chance of your company every having to think about small business for debt recovery. Trust us, this one tip alone will help you get paid on-time!
  • Be determined – if a customer is clearly paying you late and is just fobbing you off with excuse after excuse about why they cannot pay, or keep promising payment and it never materialises, then don’t just accept that situation.  You need to follow-through on threats when it comes to debt recovery.  At this point you should look at speaking to a 3rd party collection agency to assist you in collecting the invoice.

Debt recovery for small business

You want to avoid bad debt at all costs, and timely collection of invoices is the key to avoiding that.  Companies can go bust in a very short space of time and it is essential to be at the top of the payment-pile if you are thinking of debt recovery for small business.

We would always recommend attempting to collect debts before the court stage as this should be a last resort, in most cases the debt can be collected by a collection agency on a contingency basis (No Win No Fee) which means you only pay a small % commission on success, which is a no-risk proposition for you and your small business!

If you are struggling with debt recovery for small business and are wondering how to find trusted debt collectors,  please don’t hesitate to email us or give us a call on 01332 565 350 for a no obligation assessment of how we can help you improve your debt recovery rates.

invoice collection

UK businesses not feeling good about invoice collection, new research shows

According to a recent trade credit report from Credit Insurer Atradius, UK companies saw an increase in invoice collection last year (61%), up from 54% in 2018.

Despite the apparent improvement in invoice collection, it still remained that 35% of invoices produced by UK businesses were outstanding beyond payment terms. And the outlook appears to be that it is only going to get worse.

The report highlighted the fact that one third of businesses (32%) expect the trend to get worse. With over half (52%) expecting a large increase in cases where late payments occur.

In contrast, the data shows that in Western Europe only 36% of businesses expect the late payment culture to get worse.

Brexit and economic factors not helping

The data does not substantiate a feel-good factor, and industry experts are warning businesses to heed caution in 2020. With the uncertainty over Brexit continuing, credit control experts are warning that it may get worse before it gets better.

Rather grimly too, the outlook predicts that the UK will be the leader in insolvency rates, compared with the rest of Western Europe. With the UK showing a rise of 10% in 2019, and a prediction of a further 5% rise in 2020.

Late payments can cause huge problems for businesses

It’s also interesting to note from the report, that UK businesses are allowing less and less time for customers to pay their invoices, going from 24 days, to 20 days according to average payment terms.  In comparison with the rest of Western Europe, this figure sits rather high at 34 average days to allow customers pay their invoices.

This narrowing of an invoice collection window across UK businesses is expected to be as a result of a worsening late payment culture, expected in the coming months.  Thus further forcing cash-strapped company owners to collect ever quicker before delays can materialise.

Companies consider discounts to improve invoice collection

Rather interestingly, the report also notes that just under half of UK businesses surveyed (42%) would consider a discount on their invoices to ensure timely invoice collection.

If you need help with invoice collection, or are suffering from the inability to pay suppliers and would like to speak to someone about insolvency, we work closely with trusted Insolvency Practice partners who would be happy to discuss your situation in the best interest of both parties. 

Debt collector companies

Are debt collector companies all the same?

As we approach Christmas and New Year 2020, more and more business owners will be searching for debt collector companies. More often in a bid to collect as many payments as possible, particularly before the *long Winter break.
*believe me for some businesses the Winter break is a long time!

So its important that you keep on top of your cashflow around this time, but its also equally important to know which debt collector companies you can trust. Particularly, how professional they are.

On a few occasions this year we’ve had clients come to us to collect their debts after having had experience of other agencies. They enquired with us quite simply because they failed to collect their debts. They also provided hardly any feedback throughout the process, often charging a disproportionate fee to instruct them as agents, to never see them again.

Debt collector companies

When dealing with debt collector companies, we would always recommend you look for at least 4 things before choosing which one to go with:

1. Reputation – do they have an online presence (and we don’t just mean a website here, although that is a start). How good is their website, does it look like it took them 30 mins to put it together on a cheap do-it-yourself website builder? Do they have an active social media presence? Do they have testimonials which are NOT on their website (because these can be easily made up)? Or are the testimonials on external sites such as LinkedIn and Google? (these can’t be made up – or at least require much more effort!).

2. Professionalism – how professional do they sound when you talk to them? Do they give you multiple options for collecting the debt such as chasing by phone and letter, solicitor involvement, court proceedings, insolvency? And what happens if its disputed? These should all be considered when you are talking to debt collector companies. They should also have the answers instantly to any queries you have.

3. Coverage – are they located close to you and your debtors? Its imperative that debt collectors have a national presence so that they have the ability to collect debts UK-wide. Many collectors will only focus on the South East, or London as this can be a more corporate environment which will earn them bigger commissions.

4. Affiliations – are the debt collector companies highly regarded in the industry? Are they a member of a local business club, FSB, or Chamber of Commerce? Do they work with solicitors and how do they work with solicitors? Its crucial that you check who they work with and how, in order to build trust in that debt collector.

Its all about trust

The list is not exhaustive, but these are just some of the considerations you should give if you are looking for debt collector companies. Remember they will be representing your business in collecting debts, so you need to trust them!

If you are wondering how to find debt collector companies that can be trusted, check out our testimonials. Or to make contact, please email or call on 01332 565 350 to see how we can help you improve your cashflow and debt collection rates.

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