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