Debt collection for Businesses in the Uk?

MaX_PoWah

MaX_PoWah

MaX_PoWah

Associate
Joined
18 Oct 2002
Posts
1,946
Location
Sheffield
Hi All

Long time member but I don’t post that much

Just wondering what everyone’s experiences had been in using debt recovery companies to recover aged debts in the UK. You see the programmes like can’t pay we will take it away but is that really the reality?

Are you far better negotiating with these people and been keen on deposit / upfront payments? First time clients pay in full etc?

We have a few debts now circa £3000 both of them where the client is just ignoring attempts to communicate/resolve the situation.

We had good experiences with P&A receivables in Sheffield many years ago but when we used them again they had recently been taken over by a much larger company and were frankly useless. They tried to charge us a load of money for what was basically very little work and in the end we settled at a much lower amount and we still have the debt. As you can imagine this has damaged my confidence in these types of organisations

I’ve been thinking of employing a company called National Collections - http://www.ne1debtcollection.co.uk/ who have called us several times over the years and claim to be a complete service including bailiffs.

All input is appreciated.

Thomas
 
They are small private enterprise's. One is a small house builder (limited company) one is a plumbing and heating engineers (not limited)

In both cases services were provided not goods

Our T&C’s are that the first time we work for a client they have to pay in full before information is released regarding the services provided. If we work for them again or there are other mitigating factors then they are given 30 day payment terms.

The house builder had 30 days to pay and is now on 60 and not communicating and with the heating engineers the debt is several years old..

I just don’t want to throw more money after bad. Are there debt recovery companies that really do what they say or are you better pursing these matters directly?
 
MaX_PoWah said:
They are small private enterprise's. One is a small house builder (limited company) one is a plumbing and heating engineers (not limited)

In both cases services were provided not goods

Our T&C’s are that the first time we work for a client they have to pay in full before information is released regarding the services provided. If we work for them again or there are other mitigating factors then they are given 30 day payment terms.

The house builder had 30 days to pay and is now on 60 and not communicating and with the heating engineers the debt is several years old..

I just don’t want to throw more money after bad. Are there debt recovery companies that really do what they say or are you better pursing these matters directly?
Click to expand...
What about money claim online?
 
I don't understand how debt collectors work without any authority. Especially when dealing with businesses rather than naive individuals.

High court bailiffs are the only ones that can actually collect anything due. Even then there is no guarantee.
 
muon said:
I don't understand how debt collectors work without any authority. Especially when dealing with businesses rather than naive individuals.

High court bailiffs are the only ones that can actually collect anything due. Even then there is no guarantee.
Click to expand...

Quite simple if you like walking then you agree to pay :D
 
muon said:
I don't understand how debt collectors work without any authority. Especially when dealing with businesses rather than naive individuals.

High court bailiffs are the only ones that can actually collect anything due. Even then there is no guarantee.
Click to expand...

A successful claim against a business can result in a winding up order.
 
kitch9 said:
A successful claim against a business can result in a winding up order.
Click to expand...

But these debt collectors don't really go to court. They send you threatening letters and knock on your door and threaten to take you to court (with perhaps a very small percentage going to court, if any).

http://www.ne1debtcollection.co.uk/services.php

Getting CCJs is only one aspect of their services and probably requires the most effort for a small gain. Not even sure they could personally enforce a CCJ without farming it out to a proper bailiff.
 
Last edited:
What about for a reasonably sized Ltd Co (£6M turnover) very prestigious brand who owe a balance of £20k, no dispute, just citing "cash flow" problems and you'll be paid 'soon' (tm) and we're now over 60 days overdue
 
Have a look a Thomas Higgins. I used them for a bad debt and it all got paid. The costs are all on their website and it's pretty easy to be fair
 
Take them to small claims court first then obtain high court writ and get high court enforcement on the case. Still not guaranteed but it can work and the %success rate is surely going to be higher than just calling up random company. Usually a solicitor is useful as they'll be able to recommend the officers that they normally use.
 
Freakbro said:
What about for a reasonably sized Ltd Co (£6M turnover) very prestigious brand who owe a balance of £20k, no dispute, just citing "cash flow" problems and you'll be paid 'soon' (tm) and we're now over 60 days overdue
Click to expand...
Take a look at their credit file, see if their debtor days has gone up by others reporting similar. It's entirely possible it is cash flow problems. We experienced a lot of it when Carillion went bust. Thankfully all but one survived.
 
Seriously, use money claim online.

There is no point doing anything before this.

Companies in cashflow problems pay the priority debts first. You need to make sure you're one of those.

Act now. Before it's too late. Good luck.
 
Hodders said:
Seriously, use money claim online.

There is no point doing anything before this.

Companies in cashflow problems pay the priority debts first. You need to make sure you're one of those.

Act now. Before it's too late. Good luck.
Click to expand...

Above this, companies pay people who scream.

If you let your accounts go overdue and don't chase them, they wont pay.
 
Hyburnate said:
Take a look at their credit file, see if their debtor days has gone up by others reporting similar. It's entirely possible it is cash flow problems. We experienced a lot of it when Carillion went bust. Thankfully all but one survived.
Click to expand...

That's a good idea. I checked their filed accounts on Companies House, where would I check their credit file?

Hyburnate said:
Above this, companies pay people who scream.

If you let your accounts go overdue and don't chase them, they wont pay.
Click to expand...

I've chased their FD multiple times, problem is it was a one off job and now not being a regular supplier for their business, I have nothing to put on stop either to apply leverage.
 
You must log in or register to reply here.
Back
Top Bottom