Outsourcing credit control operations

3 Helpful Tips for Debt Collection No Win No Fee

On a daily basis we have enquiries regarding Debt Collection No Win No Fee and businesses ask what the catch is with this kind of service. Our simple reply to this type of question is always – there is no catch, you pay us when you get paid. It’s a win-win situation. It’s a no-brainer.

Its hard to believe, but Debt Collection No Win No Fee is exactly that. We do all the hard work for you: chasing, calling, sending letters, negotiating on the telephone, communicating bank details, dealing with any queiries, ensuring costs & interest are recovered, saving you time, money and hassle.

Here are top 3 reasons why businesses choose Debt Collection No Win No Fee for their business:

1. Protection – like an insurance policy, outsourcing debt collection on a success-only basis helps protect a company from losing the money all together. If you delay chasing payments, they become less chance of collection.

2. Time-saving – business-owners do not have time to collect invoices which are late. That is why when a debt passes the 60 day mark, many of our clients request us to collect on a debt collection No Win No Fee basis.

3. Cashflow – even-though business-owners know they may concede 5% in commission to the collection agency when considering Debt Collection No Win No Fee, the benefit in cashflow far outweighs that small loss. Debts left unchased can quickly go bad, and then you lose 100% of your money, as oppose to 95%

So here you can see why debt collection no win no fee is a crucial process for a business in their monthly routines and you should consider this too.

If you would like to chat about how we can help you structure a debt collection procedure to boost your cashflow, please don’t hesitate to call us for FREE on 0800 160 1681 or email enquiries@tauruscollections.com

  • Outsourced debt collections – should you or shouldn’t you?

Outsourced debt collections – should you or shouldn’t you?

For Outsourced debt collections and credit control we have an expert team that can help your business prosper by collecting debts on-time, saving you money and hassle.

No need to employ someone or have an uninterested admin person trying to collect your debts. We can do a professional comprehensive job for you for 30% of the cost of employing someone.

Talk to us for a no-obligation chat about how we can assist your business by improving cashflow and reducing debtor days. We are helping more businesses all over the UK. Call us on 0333 336 7196 or email enquiries@tauruscollections.com

Our clients are important to us

We are proud of the work we do to help our clients recover what is rightfully owed to them.

Talk to us for a no-obligation chat about how we can assist your business by improving cashflow and reducing aged debtor days.

We are helping more businesses all over the UK, and they are saying good things about us!

Call us on 0333 336 7196 or email enquiries@tauruscollections.com

Recovery of business debts

How businesses can increase cashflow by recovery of business debts

When you own a small business, you don’t have time to deal with bills and recovery of business debts after they turn sour. You’ll just end up losing more precious time and money, even if you do collect your debts in the end. Being prepared for late-paying customers is an important part for the successful recovery of small business debts. Quick action is key to maximizing profits and minimizing any losses in a small business.

Early Recovery of Business Debts

If you’ve built up some little semblance of rapport with your customer base, we know it can be hard to just simply send a collection agency after them and force them into a corner, but you have to think about the future of your company and not be distracted by individual cases, all debts must be paid.

The first action you should take is to send invoices including late fees before their payments are due, so if they do not respond to that letter, for whatever reason, that is their failed responsibility. You can let the customer dictate the rules of payment, if they cannot pay their bill on-time, then they must commit to some type of repayment schedule to show that they are serious about paying. This is how debt collectors can make the recovery of business debts a much more reliable transition for you, so that you can focus on growing your company.

As long as you have made the kind gesture to the customer that their payments are due soon, there is no reason for them to think that you are a company of no compassion. A customer that is serious about paying will always prefer to go through you before having to deal with a third party bill collector, so always use this opportunity to play a good cop/bad cop scenario with them.

Let the professionals handle it

After exhausting your own resources in-house, you just have to concede that there is nothing you can do at this point that will make it worth chasing the debts on your own, so you really have no choice but to hire a debt collector that can take further steps that will enable you to recover as much of that debt as possible, unclogging your cashflow problems in the process. A complete recovery of small business debt is of course ideal, but even if you are only able to get a reduced settlement out of customers that went cold-turkey on you when all attempts at communication failed would be an amazing boost of cashflow and morale.

You could, of course, dedicate an entire afternoon to instigating legal proceedings for small claims court, if it really is just one major culprit causing you debt grief, but if that is just not a realistic scenario for you, recovery of business debts is best left to the professionals. While you take this journey as a small business owner, you will experience more instances where debt collection just becomes something you must factor and outsource out every quarter in order to keep operations running smoothly.

If you wouild like to discuss how a 3rd party can help you with recovery of business debts, please don’t hesitate to call us today on 0333 336 7196 or email enquiries@tauruscollections.com

Outsource debt collections

Why businesses should outsource debt collections to professional debt collectors

Companies look to outsource debt collections when it no longer becomes worthwhile to handle everything internally, taking away precious time from other tasks and stunting growth. When should you decide to call the professionals? The answer depends on how big your business is and the rate of success you have with collections.
Unless you’re one of the lucky few, a third party debt collector is going to be able to deliver higher success rates of partial and full debt collection from overdue customers than you can by yourself. The reason behind that is simply due to human nature. There are going to be customers who never planned on paying their debts and do not feel obligated to heed to your calls and letters.

Boss needs a vacation


Start-up businesses know the importance of time-management. If you suddenly have a spike in late payments, you have to address those problems immediately, all the while handling the core mechanics of your business. Even if you have an amazing team, things can quickly spin out of control and those debts will start seeping into your revenue stream, because you can’t collect fast enough.
Outsourcing is, for the most part, always going to be a cheaper alternative to whatever you can handle internally. After you have already made the usual courtesy letter and phonecall of “pay up”, you should have a team of professionals that can take things from there and get the customer’s attention. At this point it might be worth considering to outsource debt collections.

Taking your kindness for a weakness

One last important point to make about internalizing debt collection, and the argument to outsource debt collections. If you, as the owner, are calling up your customers who either feel too ashamed or too uncomfortable talking about their late-payment behavior, they’re going to try to avoid you. This is wasting your time and your money, the longer you wait to collect debt, the less likely you’ll ever see that money. Outsource debt collections specialists can keep things civil, yet resolute, with a clear message about payments. They will get the best results because their business relies on your business.
There are plenty of companies that specialize in outsource debt collections online and they can provide advice on what is best for your business and what type of tools and resources they can offer you. This should be a long-term investment relationship and not just an emergency band-aid. Prevention is the best way of handling collection of commercial debt.

Cashflow for businesses

Why cash flow for businesses is crucial

Time is money, and for small businesses any wrestling around with debt collection could leave you on the losing end, even if you get your dues.  Having a game plan before the problem of a non-payment from a customer is important, no matter how great your customer base is, it can mean the difference between life or death-of a business.

Maximizing Profits while Minimizing Losses

Your first goal, no matter how likely or serious the customer is about paying their debts owed, is to move fast and keep a strong resolve.  When considering cash flow for businesses, you shouldn’t play favorites or treat any debts as a special case.  Immediately send invoices and pursue late fines and make it urgent that they contact you about making payments.  If you try to be too personal and allow them to drag out their responsibilities over the phone, you are going to be less likely to collect and more likely to be wasting your time.

On the contrary, if you have sent invoices and left them messages, it is important to allow time for a response, otherwise this will scare them off and make them think it’s too late and they might just ignore your attempts to contact.  The customer would rather speak with you than a third party collector, so use this opportunity to make them feel comfortable, but get them to commit to paying something before hanging-up.

Cutting your loses, so you can get back to business

When your own personal attempts to collect have been exhausted, then you must hire a collection agency that can continue the steps that will give you the best chance at collecting your money and putting it back into your cash flow.  Whether that means settling for a reduced cut than what is owed, it doesn’t matter at this stage.  The customer is either someone who has no intention of paying or cannot afford to pay the full amount, so you shouldn’t try to squeeze blood out of a stone.

Cash flow for businesses has never been more important.  You must weigh the options of taking it upon yourself to file a lawsuit and spending a day in small claims court or using a third-party that can offer you more tools to reinforce your internal operation and outsource further debt collections as you see fit.  As your company grows, so will the issue of debt collection, so be prepared and model your needs for the long-term, then you will no longer need to divide your time away from what’s important: making money!

If you are having cash flow problems in your business and would like to chat about debt collection, or our popular invoice finance scheme as a more sustainable solution, please don’t hesitate to contact us on 01332 565350 or email enquiries@tauruscollections.com

Collection of business debt

Why collection of business debt is crucial to your company survival in 2015

For small businesses, problems with collection of business debt is not a matter of ‘if’, but ‘when’ you will have to deal with it.  It can lead to the ultimate downfall of a company if you are not diligent and proactive about it.  How you navigate this potential minefield is the difference between being sucked-dry of all income or relegating debt to a simple accounting figure.  Being proactive and spotting problems before they become too big, or even before they happen at all is a major key to success.

Accounts Receivable

In bookkeeping, this is what they refer to as debt, or payments that are owed to the business.  You could just simply call up these debtors and demand your payment, or you can have a system in-place that can increase your success-rate of collecting business debt.  The key is in being able to collect your debt, without having to pay more money to get it.

Late Paying Customers

You’ll find that the majority of customers are going to go quiet on you when it comes time to pay their debt.  Those that do attempt to pay, even if they are unable to pay the full amount are easy to work with; late payment is better than no payment.  If the customer is one who has gone silent and hasn’t talked to you about why they haven’t paid their debts, it is important to exhaust all your options first before jumping into litigation.

First, you should try as soon as possible to contact those who may be at-risk of defaulting on their payments and try to keep the lines of communication open.  If you just send out repeated letters demanding payment, chances are they will never follow-up and drag it out as long as they can.  Before you hand your debt collection duties off to an agency, try to be as personable as possible to the debtor, this may be seen as going out of your way to collect a debt, but for a small business, every victory counts, those debts add up fast.

Hire a collection agency

This is simply the natural progression for collection of business debt and your best hope to get through a non-responsive customer.  The reason why it is important to act quickly and try to collect your debt before moving on to this step is because you will only be collecting about half of it through an agency.  Something is better than nothing, of course.

Small claims court

This can be an alternative to hiring a collection agency.  Don’t pay attention to those court TV shows, the cases often appear longer than how long it actually takes to reach a verdict.  Small claims will often cost very little to collect, in comparison to hiring a collection agency.  More than half of all small claims court cases are on behalf of small businesses, so that should give you an idea of how advantageous they can be for collection of business debt.

Credit checking for companies

Does your business have a credit policy?

Most businesses know the importance of a business plan to get your business off the ground. And a marketing and sales plan to grow your business. But what about the next stage….collecting cash. This is THE most important stage if you want to stay in business.

A credit policy can set-out clear objectives and guidelines to your staff.

Here are 3 things you should include in a credit policy when considering doing business with new customers:

• Credit checking – every customer must be fully credit checked and tested prior to offering credit. There are plenty of online systems to check a businesses credit history.  Remember credit is a privilege not a right.  Also why not phone your potential new customers previous customers and ask if they paid on time, as support to your credit check.

• Credit limits – how much credit do you want to extend to your new customer. Start off low and then build up once you know they can pay on time, you need to build trust and this is when you can extend credit. Any earlier and you are placing your company at unnecessary risk.

• Contact forms – each new customer must complete a saved template contact form, signed by their MD. This information should contain details such as: Accounts Payable contact, all email addresses, telephone numbers, fax, alternate trading addresses, mobile numbers – this detail will be invaluable if your customer ever defaults on a payment, as fast contact is critical to resolving any queries and ensuring timely payments.

This list is not exhaustive when it comes to a credit policy, but these are important considerations your Credit Department or you as a business-owner should be thinking about when you do business with a new company.

Are credit management techniques used in your business? Do you set credit limits? How strict are you with your customers if they fail to pay on time?

Recovery of business debt

Recovery of business debt – are your procedures in place?

As we settle into the full swing of summer, your organisation should be thinking about maximising recovery of business debt by ensuring your staff are following correct procedures and your invoices are pushed to the top of the pile by your customers.  Holidays will soon be underway, and with staff absences for the next 2 months, now is the time to make sure your collections procedures and invoicing is a priority in your business.

See below 3 top tips we have learnt over the years dealing with recovery of business debt for our clients, hopefully you will find this useful and can implemented into your company:

  • Invoice quickly – to be efficient in the recovery of business debt, you will need to be fast.  Once a job has been completed, invoice your customer straight away.  Faster invoicing = faster payment. Simple.
  • Be clear on payment terms – try and discuss with your customer prior to starting any work how you would like to be paid and how fast (7, 14, 30 days).  We would always recommend 14 day terms as average, because the longer your customer has to pay you, the more problems that may arise in that time, and your cashflow could be impacted.
  • Invoice as Notice to Pay – design your invoices so they look like they should be paid.  This is a strange one, but many invoices we see have very little information and this discourages customers to pay them fast.  At the very least you should include: your bank details for BACS, telephone number for Credit Card payment, telephone number for queries, address to send cheques to.

If you are considering the best way for your business to optimise its recovery of business debt, try implementing these changes to your collection and invoicing procedures and you should see more payments, paid faster.

The list is not exhaustive, and there are lots of ways you can improve collections and reduce debtor days.

If you would like help with recovery of business debt or for a no-obligation chat about any of our outsourced credit control services to improve your cashflow, please don’t hesitate to contact us on 0843 309 1633 or email enquiries@tauruscollections.com


Taurus Debt Collections and Recovery Logo

Data Protection License Number (ICO no.) Z2530888. All content ©2013 Taurus Collections. Site built and optimised by Whirlwind Hosted in the cloud by: novacloud.co.uk