How To Recover Debt From A Limited Company: A 5 Step Guide

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How To Recover Debt From A Limited Company

More and more businesses are experiencing issues with clients not paying their invoices on time or at all, and this can become extremely frustrating for business owners. Recent research has shown that 57% of businesses within the UK have experienced this.

This is a staggering amount considering the current economic climate where cash flow has never been more important. When you have provided a service or goods to a customer and they are happy with the result, it is natural that they should pay for the works.

If you work within the B2B sector and have difficulties with non-paying clients, you are probably wondering how to recover debt from a limited company. At Best4DebtCollection, we have extensive industry experience and the knowledge available to assist with any debt collection query.

This five-step guide will go into detail the different approaches for ensuring your invoices are paid on time and the money is owed to you.

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How To Recover Debt From A Limited Company

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5 Steps On What To Do When A Business Owes You Money

Send The Client A Reminder Letter

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The first course of action when collecting a debt from a limited company is to simply send a reminder. This is standard practice for most businesses that chase unpaid invoices or debts within the UK.

The reminder letter must be polite and professional, as good communication is the key to all forms of problem-solving. Within the contents of the letter, this should clearly explain that the invoice for the service you have provided is overdue and request that payment be based on the invoice.

Before sending the letter, it is recommended to find out who will be paying the invoice as to not prolong the invoice getting paid. If you speak to the right person from the start, this will negate any difficulty in communication going forward.

A good example of how simple the reminder letter should be is similar to the following:

“Dear [debtor],

This is a quick reminder to advise you that [invoice number] is due for payment.

We kindly ask four you to please settle the overdue accounts at the earliest opportunity.

Please find attached the copy of the invoice for your convenience.

Kind regards,
[Your company]

Send A Statement Of Client Accounts

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Have you sent a reminder letter with no payment forthcoming and no communication back from the client? The next step is to send both a letter and an email.

Following up your first letter with another form of communication (email) ensures for a multi-channel approach which will hopefully express the urgency of the payment to the client.

Within the next letter and email, it is recommended to attach the outstanding statement of accounts which will allow the client to see how much they owe you in an easy-to-read format.

It is possible that the letter may have been lost in the post and may have not been received, so it is best not to get angry about the lack of communication from the client in the first instance.

Make sure you always ensure to keep your communications polite and courteous as to not jeopardise the relationship between yourself and your client.

Make A Phone Call To The Client

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If the first two methods of communication haven’t worked, and you’re still suffering with unpaid invoices from a limited company, the next step is to make a phone call.

It is a lot easier to ignore an email or a letter than it is a phone call, and will hopefully show some signs of positivity within the communication chain.

We have had a lot of experience with clients who feel hesitant to make phone calls as they see these as chasing, however getting on the phone to a customer is still a perfectly polite and acceptable step considering the circumstances.

Failing in the completion of the first two tips, this is a natural progression from these and will help to put you in the spotlight with the difficult client.

Having a meaningful conversation on the phone with the customer will help you better understand why they are not paying. Perhaps they are having financial issues and needs a payment extension? This is something you wouldn’t know without having a conversation with the client, so it is good to keep calm should this be the case.

Be Professional In Your Chasing

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Have you had a conversation with the client via phone and they still have not paid for the invoice, despite your previous communications?

It may seem extremely counterproductive to have to chase so much, but continuing to chase the client for payment is the only real way to secure payment by yourself.

Regularly reach out to the customer to make them aware of their unpaid accounts and to ensure that they know you will not be giving up on the invoice. You set up payment terms with the customer for a reason – to ensure you get paid.

In the communication you use to chase the unpaid accounts, it may be worth telling the client you will not be providing services to them anymore. However much this may seem like a guilt trip, it is only necessary and right as YOU are owed money by THEM.

Use A Debt Collection Agency

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If you have tried every other form of communication from the list above, it is only right to push things further and to acquire the services of a specialist Debt Collection Agency.

Having an unpaid account collected from an agency who has expert knowledge in this field is the best way to ensuring any form of positive resolution.

At Best4DebtCollection, in our service, we are committed to ensuring we find the right collection agency based on your requirements and will only recommend those who have your best interests at heart.

All of the partners that we recommend are fully vetted and have extensive industry experience with recovering debts in the UK and across the globe.

It is imperative that if you are going to go through the route of choosing a collection agency that you choose the right type, with good practice and ethics.

Choosing the wrong company is sometimes worse than choosing none at all, which is why at Best4DebtCollection we are guaranteed to recommend only the best agencies.

How To Recover Debt From A Limited Company

Get the Best4 Debt Collection Quotes Now

How To Recover Debt From A Limited Company

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

How To Recover Debt From A Limited Company – Frequently Asked Questions

What Type of Debts Can Be Recovered?

Our award-winning partners can help recover any type of debt, be that personal, international or private. When you submit our quick contact form you’ll receive the best quotes for your debt, so you can choose the best debt collection agency.

What Is The Cost Of Recovering A Debt?

Our partners operate the Lowest Commission rates from as low as 6% for Commercial Debts. They also provide a Free Legal assessment to ensure the debt is legally valid and collectable. Each debt is taken on its own merit. Our partner’s service is also Low Fixed Fee.

Do You Have A Minimum Debt Value Which Will Be Acted On?

Some of our partners usually deal with Legally valid debts from £250+ but sometimes help with smaller depending on the circumstances and volume. The easiest way to find out is to complete the quick web form, then you will be able to choose the best debt recovery agency for you.

Do You Help Individuals As Well As Businesses?

Our award-winning debt collection partners have helped thousands of Individuals recover what is owed to them. From Personal loans given to unpaid invoices for services provided, we can help

What Is The Typical Debt Recovery Rate?

Our Debt Collection partners collect as much as 90% on undisputed Business debts.

Get the Best4 Debt Collection Quotes Now

How To Recover Debt From A Limited Company

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

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