- 29 Nov
DIY Debt Collection - How To Collect An Unpaid Debt
We are sometimes asked for help collecting overdue debts. If there are numerous debts or if they are substantial enough there are providers that will handle the case for you, however when the debt is smaller, maybe just a few thousand pounds, although important to you, you may also find that it is often not large enough to warrant getting professional debt collectors, or perhaps even solicitors involved.
DIY Debt Collection
We recently had a case where a company had a debt owed, there was no commercial dispute involved, but the amount of the debt was really not large enough to warrant being handled by a solicitor, or debt collection agency. Costs would have eaten up a large proportion of the money that was owed.
Below are some suggestions about how the creditor could handle the debt collection themselves - DIY debt collection if you like. Involving a solicitor should always remain your last option because of the costs, especially with relatively small outstanding debts.
Firstly, with any amount owed you should follow a solid credit control process. We have a full credit control procedure within our free credit control guide, which also covers how to issue a final demand under the section on "Statutory Demands" - this is the final action within your process prior to taking legal action. That section of the guide includes a link to the Government's website which should be helpful regarding the issue of a statutory demand. The guide also covers other monies you may be able seek to recover e.g. statutory interest on the unpaid debt.
Another useful Government resource is Money Claim Online (MCOL) https://www.moneyclaim.gov.uk/web/mcol/welcome which deals with applying for County Court Judgements (a court judgement that can then be enforced against a debtor) or Winding Up Petitions (which is an order to cease the operations of a business and use its assets to pay off its creditors). There are pros and cons as to which type of action you take. However, the Money Claim Online system allows you to instigate this process yourself, rather than needing to involve a solicitors. Typically the cost of using a solicitor to invoke either of these instruments could be between £1K and 2K.
If you have any doubts, you should of course seek advice from a Solicitor, but these useful resources may help you to hand your debt recovery yourself.
- 03 Dec
UK Ombudsman Proposals For Banking And Finance Complaints
UK Finance, the trade association for the UK banking and finance industry, which was formed on the 1st of July 2017, has announced proposals to increase SMEs access to independent ombudsman services.Any SMEs with invoice finance related complaints should see our advice regarding invoice finance complaints.SMEs could soon have banking and finance disputes resolved, and dealt with, via a binding...
- 28 Nov
Help Funding Christmas Cash Flow Problems
Hard to believe its only November and we are already planning for Christmas, however there are good reasons to plan ahead at this time of year. The cash flow of your business can be particularly affected by the seasonal effects of Christmas.For example, staff expect to receive their monthly wages early, before the Xmas break - and in some cases there will also be Christmas bonuses due to be paid....
- 24 Oct
Car Repair Invoice Discounting For All Sizes
We have had a lot of success helping finance car crash repairers. We have assisted the full range of sizes from small companies to multi-million pound turnover companies. There are no minimum turnover restrictions on these types of facilities so even the smallest businesses can use this type of invoice discounting without the need to worry about minimum fees, or reaching minimum levels of...
- 23 Oct
New Asset Based Lending Funding Company
One of the most important features of the business finance search service that we offer is that we are continually adding new funding companies to our panel of funding partners. There are almost 100 different invoice finance companies operating in the UK at present.We do this to make sure that we can provide not only the cheapest invoice finance prices, but also the most flexible funding options...
- 22 Oct
Recruitment Outsourcing Without Issues
I posted the other day about the issues that can be associated with some of the recruitment outsourcing companies who also provide funding. Interestingly, we have just had a conversation with a new outsourcing invoice finance company that are able to provide the full range of services from funding, to payroll management to accounting services.Being able to access this kind of package of services...
- 19 Oct
Recruitment Acquisition Finance
We are looking at a prospect that is seeking recruitment acquisition finance for a business that they are seeking to purchase. I highlight this as a reminder of how invoice finance can be used to fund company acquisitions.In this case it is a recruitment sector company, however the same approach can be applied to any sector.There are two possible ways in which you can structure this type of...