30 January, 2015
A number of businesses rely on their internal credit control function to manage cases through the legal recoveries process, however we are seeing an increasing number of examples that make the case for outsourcing debt recovery:-
Many businesses don't have the internal resource to chase defaulting customers with the frequency that is often necessary to achieve a recovery or monitor instalments. For many businesses concentrating on their core functions and profitability is time and money better spent.
Good customer relationships are vital to maintaining repeat business; the involvement of an outsourced legal function clearly represents distinction between you and your product or service on the one hand and your debts on the other.
Threat; The power of a solicitor's letter
A common misconception is that if a customer hasn't paid on receipt of a letter or telephone call from the business they owe, then they wont pay anyone else. However, a solicitor's letter has the power to collect where a credit control letter cannot because it is the clearest indication of a matter being escalated through the legal process.
When it is necessary to escalate the legal process, credit controllers are sometimes faced with the difficult task of identifying the exact legal entity that a sales force has contracted with or where a logistics department have delivered to and records are not always fully up to date.
Cost; The bottom line for any business
The good news is that whilst Her Majesty's Courts & Tribunals Service's fees are increasing, the amount allowed in respect of legal representatives' charges is actually falling. For example, commencing a claim for a value over £5,000 remains at £100; calculations indicate that this is equivalent to £153.66, accounting for inflation.
We have developed a variety of tactics and styles of approach to elicit a response and payment from even the most difficult types of debtors. As well as expertise in the law of debt recovery and enforcement, we have experience in different debtor types and sectors. Ultimately, there is no substitute for professional training and experience and the volume (whether low or high) of matters that you choose to refer is no bar to instructing us. There is a recoveries solution that we can provide for every client. Our Debt Recovery Department is experiencing an increase in SMEs requesting advice on outsourcing their debt recovery function.
For a no obligation meeting to discuss your options, please contact Alison Nelson by email or on 01254 222303