Most of our client often ask, “When is the right time, and how long should they wait before taking action against, their client and instructing our debt collection services”?

We tell our clients that, we would not let invoices go over 90 days from the date of issue without taking action. This is because, the older a debt becomes the harder it is to recover. Nevertheless, in most businesses every client is different, and this depends on the payment history that the client has had with them in the past, and how long they have been in business with them.

We were contacted by a new client, who was owed a substantial sum of money from one of their clients. Our clients had dealt with this customer for years, and this customer always make payment within our client’s payment terms. They were also sitting on a lot of stock which had been previously ordered and was specially made for them. Due to the long-term relationship of trust and payment this customer had developed over the years of trading, our client was very reluctant to instruct us to collect the debt from their client because they did not want to lose the good relationship they had. Meanwhile, they had not been paid or had any response regarding payment for over 60 days. We made further investigation to discover that the company had a number of active County Court Judgments registered against it, which has been the reason why they had not heard or had payment from them for 60 days, and they decided to instruct our services.

We served the company a legal demand letter and negotiated with them on paying their debt. They were looking to repay the debt over 36 months according to their plan but we managed to get them to pay their debt in 4 months. We made a full recovery including all our costs on behalf of our client.

The business went into Administration around 6 weeks after we had made a full recovery, so our clients were extremely lucky to have taken action when they did.

Contact us today

Think we could help your business?  Call us on 0577669030, 0577669039

    Leave a Reply

    Valentine
    Gift
    Target 100

    people