If you are owed money by a business or an individual, you must act promptly to ensure a successful recovery.
Some of the most common scenarios where debts are owed include:
- · A friend or family member has borrowed money and not returned it to you.
- · A self-employed worker has provided a service and the customer has not paid.
- · A business client has missed an invoice payment date and is refusing to pay.
- · An employer has overpaid an employee and they will not pay the money back.
These are only a few of the situations where money can be owed and shows how prominent it is.
For example, it has been recorded that around £61bn is owed in late payments to UK SMEs.
It can be an extremely upsetting and stressful time when you are owed money, especially if you are unsure of how to proceed.
Cash flow maintenance is one of the most important things one should look after.
After all, this is the bread and butter of any organisation and is dependable on its longevity.
There are many different ways in which someone can undertake the recovery of money that is owed.
Whilst there are several options to choose from, you must choose the right one.
Considering the severity of the situation you are in, making the wrong choices can be disastrous for your finances.
Due to the stress of trying to recover money, many people try to abandon debts completely.
You should take note that this is never a task that should be completed as this money is rightfully yours.
It has also been known that some will try and recover the debts independently…
…only to fail and end up wasting lots of time and money with no outcome.
Solicitors are also a trusted method that can end up costing more than is worth.
Why should you spend lots more money when you are already owed it in the first place?
The best method for recovering a Commercial, Private or Overseas debt is by using a professional debt collection agency.
In this article, we have put together some of the advantages of using this method above all.
What Are the Advantages of Using a Debt Collection Agency?
Whilst some of the above options can be successful in some situations, using a debt collection agency is by far the most desirable.
Here is a list of the reasons why choosing a debt recovery agency will be beneficial to you or your business.
High Recovery Rates
If you try to recover a debt independently, it is a fact that there are no guarantees of a successful recovery.
Recovery rates from debt collection agencies are far superior, with some being as high as 90% on undisputed debts.
Additionally, the time it takes to recover a debt is significantly faster than doing this yourself.
Affordability
This method of recovery is by far the most cost-effective and hassle-free available.
Debt Collection Agencies, such as Federal Management, charge the lowest commission rates in the industry.
This means you only pay a small amount if the recovery of your debt is successful.
In comparison, some Solicitors can charge as much as £200 per hour for their services.
You should never have to pay more than is necessary to recover money that is owed in the first place.
Relationship With the Debtor Is Not Jeopardised
One common perception about debt collection is that it can damage the relationship between you and your client.
This is due to the small number of delinquent agencies out there that will act in negative ways towards the debtors.
It should give you peace of mind to know that most agencies ensure to not jeopardise any existing relationships.
This is achieved by acting most professionally and not using malicious tactics to recover the money.
Enables You to Grow the Business
A major benefit of using a debt collection agency is that it can help you continue to grow your business.
As you do not have the task of collecting this yourself, you can work on tasks that will benefit your business.
These include the continuation of existing work and the procuring of new business opportunities.
Understandably, the organisation of those that waste time collecting money will suffer due to the lack of internal resources able to carry out work as well.
The Benefits of Using a Debt Collection Agency
There are many advantages to using a debt collection agency to recover money that is owed to you.
No matter whether you have a Commercial, Private or International debt, this is the best method to use.
Debt Collection Agencies have all the tools and industry experience required to perform successful recovery of your debts.
For example, Federal Management is regarded as the UK’s leading commercial debt collection agency.
If you are owed money by a private individual, such as a friend or family member, Frontline Collections are experts in the recovery of this. They are leaders in Private Debt Collection in the UK.
