Commercial Debts Recovery: What is it and how can it help your business?

Commercial debts recovery, or business debt collection, is a service that helps businesses reclaim unpaid invoices. This can be an extremely time-consuming process if you’re trying to do it yourself. A debt collection agency can help businesses recover individual or multiple outstanding invoice payments, saving you time and money in the process. If you’re struggling to collect debts owed to your business, don’t worry – you’re not alone. In 2022, three in five UK SMEs are waiting on unpaid invoice payments.

How does commercial debt recovery work?

Commercial debt recovery works by engaging a specialist agency to help you reclaim any unpaid invoices. The agency will work on your behalf to recover the money that is owed to you, using a variety of methods such as phone calls, emails, and letters.

It exists to help businesses save time and money by taking on the debt collection process for them. Furthermore, this will assist you in evading costly litigation and help to procure outstanding payments while still maintaining positive relations with your clients. This is important because chasing unpaid invoices can be extremely time-consuming, particularly if they have been left unpaid for a long period of time.

The typical outcomes of debt recovery are:

– The full amount of the debt is repaid to the business

– A partial payment is made by the debtor

– An arrangement is made between the business and the debtor to repay the debt over an agreed period of time

What is the process of commercial debt recovery?

The process of commercial debt recovery can be summarised into six key steps:

– Commercial debtors are identified 

– Initial contact is made with the debtor

– The debtor is given a certain amount of time to repay the debt

– If the debt is not repaid, further action is taken

– The debt is recovered

– The case is closed

My Debt Recovery’s Process

Here at My Debt Recovery, we are known for our professional approach to recovering monies owed to our clients. When we take on any work, we will always aim to recover your monies by negotiating with the debtor. However, sometimes this isn’t always possible so we need to go through some more formal steps to recover what is owed to you. 

To help you understand the debt recovery process, we have put together a typical process we would follow. This isn’t a one size fits all so we will always personalise our approach based on you, your debtor and the type of debt.

How can commercial debts recovery help my business?

Commercial debt recovery can help your business in a number of ways, including:

– Improving your cash flow: This is because the sooner you are able to reclaim any unpaid invoices, the better. This will give you a much-needed injection of cash that can be used to fund other areas of your business. 

– Reducing your stress levels: Dealing with unpaid invoices can be extremely stressful, particularly if you are struggling to get in touch with the debtor. Commercial debt recovery takes this stress away from you by dealing with the situation on your behalf.

– Freeing up your time: As we mentioned earlier, chasing unpaid invoices can be very time-consuming. This is time that could be better spent on other areas of your business. Commercial debt recovery gives you your time back by dealing with the situation for you.

When should my business use a debt collection agency?

Commercial debt recovery should be considered when:

– You have tried to recover the debt yourself but have been unsuccessful

– The debtor is based in another country

– You do not have the time or resources to chase the debt yourself

– The debt is large and you would like some help to reclaim it

– You have multiple debts that need to be recovered

– You are struggling to get in touch with the debtor

If any of the above apply to you, then commercial debt recovery could be a good option for your business.

How much does business debt recovery cost?

The cost of debt recovery will vary depending on a number of factors, including:

– The size of the debt

– The location of the debtor

– How many debts need to be recovered

My Debt Recovery works on a no collection, no fee basis so if we are unsuccessful in recovering the monies owed to you, you don’t pay us a penny. If we are successful, we charge a % of the money recovered for our services and this is usually based on the age and value of the debt.

How long does debt recovery take?

The length of time it will take to recover a debt will depend on several factors, including:

– How quickly you instruct us to act on your behalf

– The location of the debtor

– Whether the debtor is willing to cooperate with us

Commercial debts recovery can be a quick process if the debtor is based in the UK and is willing to cooperate with us. However, if the debtor is based overseas or is unwilling to cooperate, the process can take longer.

Commercial Debts Recovery with My Debt Recovery

My Debt Recovery has a team of experienced debt recovery experts who are on hand to help you reclaim any unpaid invoices. We understand that dealing with unpaid invoices can be extremely stressful, which is why we aim to make the process as simple and stress-free as possible for you.

If you would like to find out more about our commercial debt recovery services or if you would like to instruct us to act on your behalf, please get in touch with our team today. We offer a free, no-obligation consultation so you can find out more about how we can help you without commitment.

Get In touch

0800 009 6106