| When you're running a business, making sure | | | | threat of legal action is enough to make your |
| your customers pay their bills on time can be | | | | customers settle up. For some businesses, |
| very difficult and a huge drain on resources; | | | | however, it can be difficult finding out |
| especially if you only have a handful of | | | | exactly how to go about commencing legal |
| staff or are a sole operator. Unfortunately, | | | | action against a debtor. As a result, many |
| many small businesses are forced to close | | | | outstanding debts find themselves passed to |
| their doors within 12 months of starting up, | | | | specialised debt recovery companies. |
| and non-payment of customer accounts plays a | | | | |
| large part in forcing a business to close. | | | | In the UK, there are many debt recovery |
| | | | companies available who can help reclaim |
| Non-payment is a serious issue for businesses | | | | outstanding debts, and these companies have |
| of any size. Late or non-payment of debts | | | | the time, expertise and resources required to |
| can cause serious cash-flow problems, | | | | pursue customers who have outstanding debts. |
| resulting in your business facing many | | | | If you decide that legal action is necessary |
| problems of it's own - from unhappy staff to | | | | to reclaim an outstanding debt, companies |
| not being able to maintain supply-and-demand | | | | such as Capquest offer solutions that can |
| for other customers you may have. However, | | | | help reclaim your money. |
| if you're experiencing problems with getting | | | | |
| paid then there are several steps you can | | | | One solution is to commission the debt |
| take to ensure your debt recovery doesn't | | | | recovery company to recover the debt on your |
| impact too heavily on your business. | | | | behalf. For a fee - normally around 10% - |
| | | | the company will act on your behalf to work |
| Trying to contact a customer or client about | | | | with the customer in order to find a mutually |
| an unpaid bill can be difficult. Most | | | | suitable solution for both you and the |
| contact is done either by phone or mail, and | | | | customer. Alternatively, many debt recovery |
| there is always the uncertainty about a | | | | companies will purchase the debt from you. |
| letter being lost in the post, or a telephone | | | | In return, they will process the debt as |
| message not being passed on, although in some | | | | their own and allow you to draw loans against |
| cases it could be that the person you are | | | | the money owed to your business. This method |
| trying to reach is simply avoiding you. | | | | is commonly used by businesses to improve |
| However, contacting the customer is very | | | | cash-flow, but is also a useful method of |
| important as there could be a genuine reason | | | | reducing administration overheads. |
| why the customer hasn't settled their bill, | | | | |
| and you should always try to attempt to | | | | It's important to be sure that if you employ |
| discuss the situation and reach an agreement. | | | | the services of a debt recovery company, such |
| These could range from allowing the customer | | | | as Capquest, then be sure that they are |
| to restructure their repayments to writing | | | | members of an accredited body. Most debt |
| off part of the outstanding balance. | | | | recovery agencies are members of the Credit |
| | | | Services Association, who are the only |
| Sometimes, however, it is necessary to | | | | National Association in the UK for companies |
| consider legal proceedings against a customer | | | | that are active in relation to unpaid credit |
| in order to collect an outstanding debt. | | | | accounts, debt recovery agencies, tracing |
| Taking legal action to reclaim an outstanding | | | | agencies and allied professional services. |
| debt should be a last resort, and often the | | | | |