Bad Debt Agency | Recover Bad Debts

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Bad Debt Agency | Recover Bad Debts

Late payment and bad debt can be a big problem for both businesses and individuals alike. If you have provided goods or services, it is only right that you should be paid. Likewise, the same is true if you have loaned money to a friend or family member.

Bad debt can affect all types of owed money, both commercial and personal. If you are owed money, you should take steps to recover it as soon as possible. Outstanding debt can put your cash flow at risk. If your incoming funds are jeopardised, it can mean that you will be unable to fulfil your own financial obligations.

There are many options for debt recovery, including court proceedings and instructing a debt collection agency. When you are choosing an option, it is always best to consider the benefits of each one. For example, whilst a bad debt collection agency will provide a low-cost service when compared to legal action, it will still incur a cost.

Finding the right agency to provide a debt collection service can be a time-consuming process. Best4DebtCollection provides the UK’s leading comparison site for debt collectors. We asked our in-house experts for more information on how a bad debt agency can help people recover money that is owed to them.

Bad Debt Agency | Recover Bad Debts

Get the Best4 Debt Collection Quotes Now

The hassle-free way to compare debt collection quotes from the best agencies and collectors in the UK right away

Types of Debt

Regardless of how a bad debt has been created, it usually falls within one of three categories of debt.

Commercial Debt

When a business is owed money by a client, this is classed as a commercial debt. Most cases in this category involve collecting debts resulting from unpaid invoices. It is common for a company’s in-house accounts receivable and credit control teams to chase the debt initially, with unsuccessful collections being escalated to a professional debt recovery agency.

Private Debt

Private debt is money owed to a person or individual, as opposed to a business. An example of this could be when a person is owed money from a friend or family member they loaned money to. It may also be money owed to a self-employed person, a freelancer, or a sole trader.

International Debt

International debt is money owed from a debtor who is based in another country. This can be with a commercial or private debt, as long as the debtor is overseas. Many people perceive an international debt to be more difficult to recover. However, this is not true, and many specialist agencies have proven debt collection strategies for recovering overseas debt.

Bad Debt Collection Strategies

It is important to take steps to recover a bad debt as quickly as possible. Whilst it may be tempted to sell it to a debt buyer, this is not as beneficial as recovery solutions.

Professional solutions are usually the best course of action, but there are some quick debt collection practices you can take that may prompt payment.

Contact the Debtor

Before escalating the case, your first step should be to contact the debtor directly. This should always be done in a professional and polite manner and should serve to remind them that a payment is due.

The best way to do this is by sending either a letter with recorded delivery or in an email with a read receipt. A phone call can also be used, but it should be recorded if possible. This is to provide a record that you have reminded the debtor to make a payment and they have received it.

Send a Final Notice

If your reminders are being ignored, you should send a final notice to them. This letter should again be professional in tone and inform the debtor clearly that you intend to escalate the matter should payment not be forthcoming.

It is helpful to include all documentation relating to the debt in this letter, as it will make the situation clear to the debtor.

In many cases, this will prompt the debtor to pay, as the implication that higher authorities will be involved will be enough.

Contact a Professional for Assistance

If your payment reminders have been ignored it is almost certainly a sign that your debtor does not intend to pay. At this point, you should hire the services of a professional debt collector.

Historically it has been common to take legal action against debtors. In the past 20 years, it has been more popular to instruct a professional bad debt agency to recover money owed.

A debt collection agency can recover money in a low-cost, professional and effective manner

Best4DebtCollections provides the UK’s leading debt collection comparison site. Our service is free and open to anyone, business or private individual.

Complete our easy to use web form now and take the first step in recovering your money.

Bad Debt Agency | Recover Bad Debts

Get the Best4 Debt Collection Quotes Now

The hassle-free way to compare debt collection quotes from the best agencies and collectors in the UK right away

Bad Debt Agency – Frequently Asked Questions

Can I recover Commercial Debts as well as Private Debt?

There are many different debt collection agencies that can recover every type of owed money. A specialist business debt collector can recover commercial debt quickly and at a low cost to the original creditor.

How Much Does a Bad Debt Agency Charge for Their Services?

Each case of debt collection is unique and must be judged and priced on its own merits. As such, there is no single cost for any debt collection process. Instead, many debt collectors operate on a commission basis.

Our partners, for example, have the lowest commission rates starting from as little as 6% for commercial debts. For the best idea of a cost, complete our free web form now to receive quotes from leading debt collectors.

Can a Bad Debt be Recovered from Someone in Another Country?

Many debt collectors specialise in international debt recovery. These collectors are able to help those owed money from someone overseas subject to a debt assessment from an expert. Most of our partners recover money from debtors all over the world on a daily basis.

How Successful Are Bad Debt Agencies?

All of our partners will conduct a full debt appraisal before committing to the act of debt recovery. This assessment evaluates the likelihood of debt being recovered. If it is possible to recover it, it is very likely that it will be. Our partners have an average debt recovery rate of 90% on all undisputed debts, making them the most successful agencies in the UK.

How Long Does it Take to Recover a Bad Debt?

The recovery time for any debt depends on the case’s own unique circumstances. Many debts can be collected in a short time, but a small number require more investigation and enforcement than others. The best way to get an estimation of the recovery time is to speak to a debt collection expert directly.

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