- March 23, 2021
- Posted by: Taurus Collections
- Category: Blog
Whatever business you are in, credit control is never the most enjoyable part of your week. Money collection is inevitable, but it can be frustrating, confronting, and distasteful, especially when valued clients have fallen behind in their payments for whatever reason.
Sometimes, your in-house efforts to collect overdue payments can become a significant drain on resources. If your business is suffering because of the time you spend attempting to collect outstanding invoices, it might be time to call on a professional debt collector’s UK service.
You need cash flow, but you don’t have to carry out debt collection yourself. You can avoid the frustration and get back to running your business when you work with reputable collection agencies.
Before you choose to work with a debt collect UK service, you must do your research.
How Do Reputable Collection Agencies Work?
A debt collector can work pre-legal or legal. The former is the preferable strategy. It’s also a good idea to exhaust all possible pre-legal options before considering any legal recourse. Keep in mind that winning in small claims court does not guarantee you will recoup the money owed.
Reputable collection agencies work with your company by contacting clients with unpaid debts on your behalf using various mediums, including email, writing, or phone.
In extreme cases, a debt recovery agency may use the services of debt recovery solicitors to handle the case through small claims court.
Small claims court fees are payable when you make a claim. If you win the case, you may be able to claim certain costs back. However, small claims court fees if you lose will not be recoverable. You will also not be able to claim any fees paid to debt recovery solicitors.
Small claims court is a challenging proposition, but working with experienced, reputable collection agencies will help you avoid a lengthy court case. They may even be able to keep you out of court altogether by delivering an amicable solution.
Considerations When Choosing Reputable Collection Agencies
Not every debt recovery agency will suit your needs, and knowing what to ask will help you find reputable collection agencies with the experience you need.
What are their processes? As discussed above, it’s always better to resolve credit issues in a pre-legal environment. Still, should the negotiations prove unfruitful, it will be beneficial if you are working with a collection agency that can help you with your legal options.
What industries do they have experience in? Consider the type of debt you need to collect? Is it business or personal? Each type requires a different approach, so a debt collection agency with experience in both will be the better option. A debt collection agency able to work in a wide range of sectors will have an in-depth understanding of the processes and know how to deal with any challenges.
Check their references? If you are new to working with B2B collection agencies, checking reviews from former clients is an excellent way to get a feel for how well they will perform. An established agency with a lengthy track record will have collected a significant number of references and reviews. You can also check out their website, Facebook page, and Google My Business profiles in your search, which will all feature reviews from previous clients.
How do they approach debt collecting? The type of approach a debt collection agency takes is an important consideration. You will want to work with a B2B collection agency that adheres to the laws and regulations regarding UK debt collection. Unfortunately, a few unscrupulous debt recovery agencies can give the industry a bad reputation.
The rights of the individual must be upheld, and harassment will not be tolerated. If the debt collection agency does not operate to these standards, it could badly reflect on your company.
You might also like to know:
- How are accounts prioritised regarding time and resources?
- What tools and strategies do they have in place?
- How do they monitor and track customer interactions?
How do they treat your clients? Reputable collection agencies will consider your brand’s reputation in the marketplace when working with your clients to recover a debt. Always check the terms and conditions the debt collection agency follows before you let them loose on your clients. The best approach is to strive for an amicable solution that will allow you to continue working with your client in the future.
Do they operate transparently? Are you able to view the status of your accounts, review communications between the collection agency and the client, and check the payment plans? Do you have a dedicated account manager for handling your claims?
Debt Recovery Service Fees
Any decent B2B collection agency will not charge you upfront fees and will work on a no-win-no-fee policy. A company that attempts to charge you a registration fee may not be invested in working to collect debt on your behalf.
Any agency that works on a no-win-no-fee basis will be extremely motivated to recover your debt for you. Before you sign up for the service, you should make sure you will not be exposed to hidden charges you were not made aware of.
Hiring a debt collection agency is just like hiring any other professional; research will always help you find the best options. When you follow the simple steps listed above, you should have no trouble finding a debt collection agency you can work with that has the resources and experience to deliver a satisfactory result for all parties.
Taurus Collections are a premier UK debt collection service with 20+ years in B2B debt collection. They offer competitive commission rates and offer debt collection nationwide, as well as international debt collection in 150+ countries.
If you would like to speak to one of our agents about debt collecting and to help your business through the pandemic in 2020 and beyond, please don’t hesitate to call us 01332 565 350 or email firstname.lastname@example.org