How To Recover Business Debts In Cardiff

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How To Recover Business Debts In Cardiff

Wales is home to around 200,000 businesses, with Cardiff city making up around 30,000 of these.

Businesses of all shapes and sizes in Cardiff are known for producing a lot of money for the Welsh economy.

Despite this, it is no secret that these businesses will experience the owing of money at some point.

Whilst it is common for limited companies to miss invoice payment dates, this is an issue that is increasing.

Many businesses will have a credit control team that dedicates its time to chase up any unpaid invoices.

The sad reality is that sometimes even the most stringent credit control measures cannot stop a debtor that refuses to pay.

Non or late payment of invoices can put a tear on your business’s cash flow, threatening its longevity.

Cash flow is the lifeblood of any enterprise and must remain healthy if the business wishes to thrive.

This is especially true for small businesses that will have to ensure a steady and stable cash flow to survive.

It is clear that companies need an effective solution to recover any outstanding accounts.

This can be implemented internally by having an effective business to business debt recovery protocol.

Our experts have put together three top tips for correctly putting together a protocol to help in the collection process.

business debts recovery in cardiff

Business To Business Debt Recovery Protocol Tips

A debt recovery protocol is a way for companies to professionally approach the recovery of unpaid fees. This is usually a last resort before business debt recovery services are needed.

When a business is owed money, it may default to legal action or take the debtor to county court.

Both of these options can be extremely expensive and time consuming, which is the opposite of productive.

We have put together these tips to help make your business’s debt recovery procedures as proactive as possible.

1. Send A Payment Reminder Letter To The Debtor

The first thing to do when a client has missed a payment for whatever reason is to send a reminder letter.

This is common in most credit control procedures, however, is still valid in the business debt recovery protocol.

The letter should be sent via recorded delivery which will indicate whether the letter has been received or not.

It should be professional and calm in tone and should state that the payment is due.

Although being owed money can be stressful, it is important to stay calm so as to not anger the debtor.

Any language that could be described as unfair may give the client grounds to withhold payment even longer.

To prevent any communication delays, the letter should be addressed to the person that is going to be paying the bill.

2. Prepare A Statement Of The Client’s Accounts

If your letter has been delivered, yet you have not heard anything back, the client may be ignoring you.

Letters can easily be misplaced, however, so do not get upset at the debtor if they have not responded.

If this is the case, the original letter needs to be followed up by a statement of the client’s accounts.

This statement will outline all the outstanding balance that is owed by the client.

Sending the accounts statement through both the post and via email are recommended actions.

Doing this will create a multichannel approach, which should hopefully help to produce the payment.

3. Make Phone Calls To The Debtor To Chase For Payment

If both the reminder letter and statement of accounts has failed to produce a payment, we recommend calling the debtor.

Making a phone call to the debtors registered office will allow you to have a proper conversation with them.

Phone calls are harder to ignore than emails and letters and may give you a good indication as to why a payment was not made in the first place.

The debtor may have had financial issues that they did not feel comfortable discussing until your phone call.

Your debtor is human just like you, so all communication must be done so in a peaceful manner.

Business Debt Collection Agency – Cardiff

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

Choose A Business Debt Collection Agency In Cardiff

Should your business to business debt recovery protocol fail to produce results, you need to take stricter action.

The best way to carry out commercial debt recovery is by using a debt collection agency.

At Debt Collection Cardiff, we are experts at referring our clients to the best recovery agencies.

Our partners provide peace of mind by ensuring not to jeopardise any existing relationships.

They can also perform debt recovery tasks such as debtor tracing if they have absconded.

Our recommended commercial debt collection agency is Federal Management, which has operated since 2004.

Across their long history, they have collected debts for businesses in all industry sectors.

Business Debt Collection Agency – Cardiff

Our recommended team of Debt Collection Experts are happy to help with your enquiries.

Business Debt Collection Cardiff – Frequently Asked Questions

Who Are Debt Collection Cardiff And What Do They Do?

We began in 2006 as part of the UK Debt Collection Bureau. We act as a referral agency for Cardiff’s best commercial and private debt collectors.

How Much Does Your Referral Services Cost?

Our service is free and takes the hassle out of you having to approach numerous debt collection agencies.

Do You Vet The Companies That You Recommend?

Yes, to become a member of our Debt Collection panel, each firm is subject to various security checks.

Why Should I Use A Debt Recovery Agency To Recover Debts?

You’ll see much more success by hiring a Debt Collection Agency that has expertise in such matters.

Should I Choose A Debt Recovery Company Or A Solicitor?

Solicitors are process-driven whereas our partner Debt Collection firms are results-driven and proactive.

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