Litigation and Credit Control

Credit Control and Debt Recovery

How our debt collection service works

Initially we will send a letter or fax to the debtor, which is followed up a few days later with a telephone call.  There is usually no absolutely fixed procedure since each debt is different, although we have found that telephone collection tends to be the most successful!

We can escalate the effort to collect at each step, depending on how far we have agreed to go in collecting the debt, all the way to taking action through the Courts, although we see this as very much a step of last resort.

We will always ask the debtor to pay direct to you, so that there is no delay in you receiving the money whilst any payment to us is processed through our bank account!

What does it cost?

The fee that we charge depend very much on the type of work that you would like us to do. 

For chasing multiple invoices we can work on a “no collection – no fee” basis, with an agreed percentage of any debt collected as our fee.

Our fee would normally (but not always) be in the range of 4% to 12% of the debt, depending on several factors including the age, size or number of debts that you place with us for collection.

Generally speaking, the older a debt, the harder it is to collect, the more expensive is the collection fee.

Alternatively, a large volume of relatively recent debts will attract a lower fee!  If the matter goes to Court, we will expect you to cover the full amount of any Court Fees (which is recoverable against the debtor).

Did you know?

That since 7th August 2002, you can recover interest in addition to the debt at a daily rate of 8% above base rate for business to business debts.  You can also charge compensation against the debtor (there is a fixed scale of compensation) as well as any collection costs.