It is a sad reality that businesses and private individuals will both experience financial issues at some point.
One of the most common of these is the owing of money from one person (or business) to another.
On average, over 80% of businesses in the United Kingdom are owed money to some extent.
This could be anything from clients not paying invoices on time to ex-employees not paying back the money that is owed.
Similarly, individuals face the issues of debts daily by being owed money from friends, family members etc.
As a result of someone being owed money, this can create a very stressful and anxiety-inducing situation.
This is especially true if you are unaware of how to go about recovering the money that is owed.
Many perceive the debt collection process to be time-consuming to the point they will abandon the debt.
No matter how upsetting the situation may be, you should never give up recovering what is rightfully yours.
In reality, it is a case of having the right expertise, knowledge and training to carry out debt recovery.
Continue reading this guide to find out the various methods of debt collection to choose from.
What Debt Collection Methods Are Available?
Whilst there are certainly ways to prevent a debt from happening in the first place, these are relentless and can occur at any time.
These are more frequent in larger areas, such as cities, as the population is higher.
For example, Debt Collection Manchester provides a referral service for debt collectors in that particular city alone.
It can be a challenge to know how to collect money that is owed, especially if you have no prior knowledge of this.
You will be glad to know that there are a plethora of options to choose from to perform this.
Individual Recovery Methods
Usually, the first port of call for anyone that is owed money is to try and recover the debt by themselves.
In most situations, a simple phone call or letter to the debtor requesting payment will be enough to prompt payment.
Should this prove unsuccessful, you may follow up with other types of communication to try and retrieve payment.
Although the above tasks are viable, they will only make you waste valuable time and resources that should be spent growing the business.
Self-employed individuals or small businesses may have to choose between recovering money owed or continuing on-going business.
This can be extremely damaging to the cash flow and could threaten the longevity of the business.
Third-Party Recovery Methods
Due to the rather unsuccessful nature of trying to recover a debt independently, many resorts to third party agencies.
It is common for creditors to launch legal proceedings against the debtor through the high court.
Sending a County Court Judgement (CCJ) or a Letter Before Action (LBA) is part of the debt recovery legal process.
These documents are sent to the debtor with the threat of court action if they do not provide payment in a certain amount of time.
Whilst they are known to work, sometimes it is not enough to stop a debtor from simply avoiding you.
Other forms of legal action, such as using a law firm/Solicitor, is another popular way to recover what is owed.
It is worth noting that Solicitors generally charge a lot of money for their services, with some as much as £200 per hour.
For those that are already owed money, this can be a high cost considering the circumstances.
Although the main purpose of debt collection is to recover money already owed, a benefit is to do this affordably.
Why should you spend a lot of money to recover fees that are owed to you in the first place?
To achieve this, the most cost-effective and reliable method is to use a professional debt collection agency.
Using A Debt Collection Agency to Recover Your Money
A professional debt collection agency is by far the most effective way to successfully collect what is owed to you.
There are many benefits to using a debt collection agency to recover any amount of money that is owed.
This method is becoming increasingly popular for businesses and individuals, as it provides high success rates at a low cost.
Additionally, some can provide international debt collection services to recover debts overseas.
It is important to remember that although most will provide a nationwide service, it is beneficial to use a local agency.
For example, websites such as Debt Collection Bristol and Debt Collection Cardiff provide a referral service for agencies in those cities.
Using a debt collection agency will end any previous matters as amicably as possible for all involved.
This will enable you to continue working or building a relationship with your debtor.
No matter how much you are owed, you deserve a straightforward and hassle-free debt recovery process.
For the utmost peace of mind, choose a proactive and pragmatic debt collection agency.
