If a customer or client is refusing to pay what they owe you, a debt collection agency can step in to help you recover that money. Learn more about what they do and compare the best agencies with our guides and reviews. Then, get tailored rates from top UK agencies with our free quote-finding tool.
It’s a regrettable fact of business life that, sometimes, customers or clients just don’t pay you the money they owe you. Whatever the reasons behind that may be, it’s always a difficult situation to find yourself in. Fortunately, debt collection agencies are specialists in this area, and know how to effectively recover the money you’re owed from the customer or client in question. Debt collection agencies lift a huge worry off your shoulders, and save you from spending precious time making uncomfortable phone calls and sending unpleasant emails and letters.
Using a debt collection service can be an easy way to shift the burden of dealing with your business’ finances. Whether this is due to a lack of time, experience or resources – using a debt collection service can be easy and efficient and perhaps get you better results than using your existing methods. We take a look at six of the best debt collection services in the UK below. For a more detailed search, fill out this form and Expert Market UK will search online for the best collection agencies for your business needs. 6 of the Best 1.Wescot
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The fees different agencies charge for debt collection can vary a lot. Some charge a flat fee of between 4% and 12% of any monies recovered. Others charge a percentage that’ll vary depending upon the amount of money recovered when measured against the total debt.
The amount you end up paying may depend upon your individual situation and needs. Some agencies charge additional fees for complicated activities, like tracing a non-paying client who has absconded.
Ideally, you should only be asked to pay for the service if the agency recovers some or all of your outstanding debt for you. However, this usually only applies in situations where the agency doesn’t need to take legal action on your behalf. If court action is called for, you might incur some costs regardless of the outcome.
Collection agency pricing can be a bit complex, so make sure you study your agency’s rates carefully, and ask questions if there’s something you don’t understand.
The phrase ‘debt collection’ can conjure some pretty unpleasant mental images. But there’s nothing shady about these agencies – they’re licensed organisations with strict regulations to adhere to, so you shouldn’t feel nervous about using one to represent your business.
Using a debt collection agency can help keep your cash flow positive, and save you the time it takes to manage your receivables ledger and chase non-paying customers. It also means you and your staff can avoid the stress of having confrontational conversations with people who owe the business money.
Debt collection agencies can also manage scenarios that will likely be too complex or difficult for your team to take on alone – for example, if your non-paying client vanishes, an agency will know how to find them. It’ll also handle things if the situation escalates to court.
Importantly, it’s possible to outsource your credit control to a debt collection agency on an ongoing basis, giving it responsibility for getting payment from all customers who don’t pay within the expected timeframe. That’s likely to be a real weight off your mind.
You should look for: