Let’s Bust Some Commercial Debt Recovery Myths

We’ve received some interesting feedback on a few polls that we’ve been running over the last couple of weeks and the results were calling out for some detailed responses. So here is our attempt at trying to bust some commercial debt recovery myths.

I can deal with my debt recovery myself

Whilst we agree with this to a certain extent, especially if you have a dedicated collections team in-house, there are many reasons why this isn’t always the best approach.

• Many debtors will ignore you, simply because they can. When it is escalated to a professional, they are able to utilise certain tools to ensure that debtors are forthcoming and if this is not the case, it can be escalated using the correct and most appropriate methods.
• You may make certain comments throughout your dialogue with your debtor that could be upheld in court should you need enforcement or litigation services, which may not be in your favour. This can be avoided if the negotiation is carried out via a third party on your behalf.
• Do you really have the time to be chasing invoices? Or would you rather be able to focus on doing what you do best, running your business? A commercial debt recovery specialist will take on all aspects of your case, from making initial contact with the debtor to taking the process right through to preparing for litigation if necessary.

I leave debts to pile up because I don’t like the confrontation, but debt collectors will ruin the relationship with my customer

Many business owners don’t like the thought of having to confront debtors about their lack of payment. Or, they need to keep a relationship with this particular customer and don’t want to rock the boat. But there appears to be a misconception that debt collectors will behave in an aggressive manner towards your debtors. We’re not sure where this has come from but we can assure you that this is absolutely not the case with My Debt Recovery.

We’re able to sit between you and your debtor, diffuse the situation if it does get heated and see the negotiations through from end-to-end with the utmost professionalism, respect and understanding. Your debtor either won’t pay or can’t pay, and we will be able to get to the bottom of the cause and help to find a way forward for both parties that is agreeable. And, this leads us on to…

I need a bespoke solution to my debts, not just pro forma letters that get churned out to all and sundry

There are some companies out there who profess to be commercial debt collection experts. But, unfortunately, many of them just have standard templated letters that they send out. They won’t take the time to have an open and honest discussion with you about your debts and try to grasp the full picture of what’s been happening, particularly if it’s a complex or aged debt. We handle each debtor with an individual approach as we fully understand that debt recovery is not a one-size-fits-all solution for creditors or debtors.

The cost is too high

This is potentially the biggest barrier to debt recovery. Many businesses think that services like ours will be costly and therefore not worth the loss that they’d make on recovering the debt. With My Debt Recovery, we operate on a no collection, no fee service. So if we fail to collect your debt then we will not charge you a penny. If we are successful in collecting the debt then we will charge up to 15% of your debt (if up to 6 months old). Now it’s time to make a quick calculation. Would you rather have 85% of something or 0% or nothing?! Also, is your time and energy that it’s taking you to, so far unsuccessfully, recover your debt worth 15%? Imagine all of the other things you could be achieving if you had that time back? 

If the case is not immediately recoverable through our usual methods of debt collection, i.e. formal approaches, formal approaches etc. then we may recommend that you progress to enforcement or litigation. This also sounds costly too right? But with our Escalate legal service, you will have access to an expert legal team, at no cost to you.

We’d like to think that the moral of this story is that it’s worth giving us a try. Hopefully, we’ve been able to bust some commercial debt recovery myths and help you to understand why the touch of an expert is sometimes necessary for commercial debt collections. Our team are experienced, successful and ready to help you in whatever capacity you require. Drop us a line to get in touch today.