Overview

Anyone that runs a business has probably had problems when it comes to getting the money that’s owed to you. Whether it’s the excuse that one of the people who need to sign the cheque are on holiday, or they are just waiting on someone’s approval, it still means you are not getting your money. Although it may seem unfair, many large companies do not pay their bills until they have to, as they can basically use it as a way of getting a cheap loan from you, as they are not incurring any costs, but you are. Typically late payment is not because your customers are insolvent.

Most businesses will usually find that outstanding (unpaid) invoices are their largest asset although unpaid bills are a complete nuisance, expensive to collect on your own, and are of course a major distraction when you and your staff could be concentrating on other matters. A collection agency can efficiently and quickly help to recover any overdue debt, because many companies tend to pay quickly then a third part becomes involved in matters.

This is a very professional and large industry, with a turnover of £3 billion and around 17 million claims handled every single year. There are various groups of collection agencies, and these tend to be :

• divisions of credit insurance and accounting and law firms
• divisions within most of the large credit information services companies
• small to mid-sized independently owned companies
• and as services offered by individuals (only few of whom are responsible for the negative debt collection image)
  and as services offered by individuals (only few of whom are responsible for the negative debt collection image).

Factoring is an alternative service, and depending on your needs, more comprehensive than debt collection and you can visit our Factoring website by clickig here. Collection agencies need to be licensed by the Office of Fair Trading and are regulated under the Consumer Credit Act 1974 (and subsequent regulations). There are also strict laws disallowing harassment and other inappropriate means to collect overdue debts.

Section Guide:

• How It Works: This section will tell you everything you need to know when it comes to thinking about thinking about debt recovery or collection services.
  
• Advantages: There are many plus points when using a debt recovery service, this section will tell you what they are, and why they are an advantage to you.
  
• Disadvantages: There can be points to look out for when considering using a debt recovery service, check this page out to find the disadvantages.
  
• Things To Watch Out For: By keeping your eyes wide open, you can avoid some of the pitfalls when considering using a debt recovery service, this section will tell you what to look for.
  
• FAQ: Any further questions? Browse through this page to have them answered.
  
• Glossary: A quick guide to all of the terms and words often associated with loans, and will help to find the meaning behind the sometimes complicated wording.

Thursday, August 28, 2008