Debt Recovery.

We recognise that some visitors and subscribers to this service may already find themselves with outstanding debts. This section of the site provides FREE of charge, a series of useful resources to help creditors deal with issues of late payment that are already outstanding.

 

Letter Before Action Template:

Should you find yourself in the unfortunate position of having to threaten legal action (this should always be a last resort) this document could save you money.

Thanks to Lovetts, specialist solicitors in debt recovery,  by using this simple template to issue a letter before action you can avoid paying legal fees for the same service and possibly avoid paying legal fees to collect the debt should your customer heed the warning and pay up.

To view the document click here.

 

The law relating to late payment:

This document gives you all the essential information you need to know regarding the law on late payment, what you can claim, when and how you can claim it.

To view the document click here.

 

Top 10 tips on dealing with late payment:

This is a very useful quick view document with 10 tips on how to escalate an issue of late payment with a customer. This document takes you (the supplier) from the pre-contract stage of your customer / supplier relationship to the “going legal” stage of the debt collection process.

By following these 10 common sense tips you will be ale to keep costs down and ultimately you may be able to collect your debt without the need for solicitors, debt collection agencies or automated reminder services which you would have to pay for.

Additionally, by handling this process yourself you will be able to retain control over the communications process and your client relationships without ceding it to a third party or an automated system. Don’t forget that business is built on human relationships.

To view the document click here.

 

Debt collection clauses for your Terms and Conditions:

This document will give you some practical advice on updating your existing terms and conditions to ensure that, should it come to it, you will be in a position to recover both your debt and any costs incurred during the recovery process.

To view the document click here.

 

Make and send a statutory demand

A statutory demand is the final step a creditor would take before issuing a draft winding up petition. It signifies that the supplier / creditor is serious about recovering the debt.

These pages from Gov.uk provide valuable information on making, servicing or challenging a statutory demand.

There are four statutory demand forms but the two most relevant ones are likely to be 4.1 which should be sent out if the debtor is a limited company, and 6.1 if the debtor is an individual. Both forms are free and can be downloaded here for 4.1 and here for 6.1.

 

Debt Collection – JMS Credit Consultancy

JMS Credit Consultancy has a proven track record of debt recovery.

They are a results oriented credit control and debt collection agency with have an in-depth grasp of Credit Control procedures and legislation.

With a proven track record of improving and implementing credit risk procedures and policies they have additionally been highly successful in debt recovery whilst collecting compensation, costs and interest thereby reducing debts and debtor days not only at minimal cost but even turning debts into profit. They also specialise in collecting older debts.

JMS Credit will also help implement policies and procedures to help clients minimise the risk of late payment in the first instance

 

Credit Management – NK Credit Consultancy Ltd

NK Credit Consultancy Ltd offers a complete credit management solution for your business.

There are two levels of service:

  1. Advisory service. This comes at a fixed monthly fee of £49 and provides essential support via phone or email for anybody struggling with their credit control. A great value proposition for smaller businesses.
  2. Bespoke retained service. This is a tailored offering providing a more in-depth service the leaves that business owner / leader free to focus on growth.

NK Credit Consultancy covers all the core competencies including due diligence / designing credit policies / designing terms of business / improving the accounts receivable process / ensuring compliance with consumer credit regulation and Credit Insurance Policy / establishing reasonable credit limits and payment terms and more.

 

Going to court

In preparation for this you will need to fill out an N1 claim form which you can find here. Filling out the form is pretty straight forward, however if you are doing it yourself and need a step by step guide on how to get it right first time around we recommend you read chapter 5 of Cashflow Rescue by David Walker.