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Collecting outstanding debts

added by by Trevor Abbott posted 05-12-2011 at 16:19
I'm not quite sure if this is the right group (or is it more about personal debt?) to discuss collecting money owing to a business, but here goes.

We are a small family business, but always seem to have every year a few "small" debtors who don't pay on time, if at all and have to weigh-up writing these off or chasing. I know there are companies and legal firms that provide debt collecting services - has anyone used these types of services before and any feedback if it turned out viable/cost effective? Many thanks Trevor.
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Dynaromi 13-12-2011 at 22:02
Hi trevor, when the topic of debt collection is brought up, many of us automatically have a vision of rough looking men with bats. I'm sure there was a time when this was the most common method of debt collection - but I wouldnt advise this course or action being illegal!

Handing your problem debts over to a debt collection agency can be a quick and easy way to recover them assuming you trust the firm used. You can use a debt collection agency either regularly or on a one-off basis.

Have you thought of using a factoring service to manage your invoicing receivable? As well as chasing late payments, the factoring service helps finance outstanding invoices.

Using a debt collection service distances you from your client and can be a less confrontational way of chasing late payments than taking court action. A reputable debt collection agency can chase these late payments in a professional manner (using their standard procedures) without alienating your clients, which may also be a concern of yours. D

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