How do you recover aged debt?

Over the years, our clients often ask us what is the most-effective method to recover aged debt.  It is an age old question in a shaky economic recovery and we find the simplest way of looking at the problem, is to keep it simple.

To recover aged debt you need to have very strict procedures in place that your whole company can follow.  With our clients being of all sizes, from 1-100 staff members, the same policies should be in place for the unwanted problem of collecting debts.

Here are 3 steps to follow when you are looking to recover aged debt:

  • Call your customers – you will be surprised how many debts we handle from clients that have never actually received a call about the debt.  This can often be due to time-restraints or resources, but this is crucial to “dealing with the problem head-on” and resolving the issue quickly.
  • Send letters – there should be a combination of letters and calls when you want to recover aged debt quickly, so if after 45 days you have not received payment, send a 7-day letter, then quickly follow-up with a final demand, interspersed with 2 calls to ensure full communication has been made with your customer.
  • Speak to a 3rd party – once a debt has gone beyond 60 days old, and you have not received a response from letters and calls, chances are that your customer either can’t pay or won’t pay.  At this point, you will be taken less seriously, and in-house collections are up to 80% less effective.  Only escalation to a 3rd party often warrant the best and quickest outcome when you are looking to recover aged debt at this stage.


It is imperative that business owners implement a credit policy of this sort when dealing with late-payers because standardised procedures will demonstrate to your debtors that you are serious about getting paid.

When you want to recover aged debt in future consider the procedures above and don’t leave it too late by letting your debt go bad in 2014.

If you would like a no-obligation chat about how to recover aged debt or any specific debt issues you are facing, please don’t hesitate to call us on 0843 309 1633 or email

Leave a Reply