B2B Debt Recovery Services for UK Businesses

B2B Debt Recovery Services | Commercial Debt Collection Agency

B2B debt recovery becomes urgent the moment a decent-sized customer stops answering. The purchase order was raised, the goods were delivered against signed proof, the invoice went out on 30 day terms, and now you are at day 120 with an accounts department that is permanently “in a meeting”.

Chasing another business is a different job to chasing a consumer, because you are dealing with a limited company, a credit controller who fields these calls all day, and a payment run that gets decided by someone you have never spoken to. Below we explain how our commercial collections work, what evidence strengthens a file, and what you can legally add to the balance.

What Our B2B Debt Recovery Service Covers

We recover unpaid commercial debt owed by one business to another, from single invoices of a few hundred pounds through to six-figure contract disputes. Our clients range from sole traders and SMEs to national suppliers placing whole ledgers with us.

The debtor might be a limited company, an LLP, a partnership or a sole trader operating under a trading name. Each of those changes who is actually liable, and getting that wrong at the outset costs you months.

We handle overdue sales invoices, retention held back on construction contracts, unpaid rent and service charges, recurring subscription arrears, breach of contract sums, and debts already sitting with a judgment that has never been enforced.

Our commercial collections cover the UK from Glasgow to London, with our teams operating across Manchester, Birmingham, Leeds, Bristol and the South East, and we run international recovery through vetted agents where your debtor has moved abroad.

Speak to a commercial debt recovery specialist on 0333 043 4425.

B2B Debt Recovery advantages

1. Monies recovered faster – the introduction of a Professional B2B Debt Recovery service can help a business get its invoices paid faster. The sooner a debt is recovered, the better for the business that is owed the money. An efficient b2b debt recovery agency will help achieve this.
2. Cost effectiveness – Time spent chasing unpaid invoices is wasted time. It is simple as that. Not to mention the stress and frustration it causes. An example is: if a business has one experienced credit controller paid for example £25k P.A. and they spent 25% of their time excessively chasing unpaid invoices, that is costing a business £6,250 per year at the very minimum. Not to mention the cost of phone calls, letters etc  Working with a professional and proficient b2b debt recovery agency would probably halve that at least dependent on the volume of overdue accounts.
3. Expertise and proficiency – Expert B2B Debt Recovery specialists are well versed in the tactics a small minority of Businesses use to delay or avoid payment. This expertise can mean the difference sometimes between getting an invoice paid or not getting it paid at all.
4. Flexible and direct approach – A B2B Debt Collection specialist can negotiate better repayment terms than many credit controllers. They will be more results driven and diligent as well as experienced. They will ensure the margins for a successful recovery are at a peak.
5. Valuable partnership – Working with a specialist B2B Debt Collection solution can offer additional benefits also. They can often help improve a Businesses terms to streamline the whole credit control process. Prevention is often more effective than a cure

How the Collection Process Works

Nothing goes out until we have checked the debtor properly. We verify the correct legal entity at Companies House, confirm the registered office and directors, review the latest filed accounts, and look for charges, county court judgments and any winding up activity.

That pre-action due diligence tells us whether we are dealing with a company that cannot pay or one that simply will not. The strategy for each is completely different, and treating a genuine cash flow problem the same as a deliberate avoider wastes the best window you have.

Stage One: Formal Demand and Contact

We issue a formal letter of claim to the registered office and to the named director, setting out the principal sum, statutory interest, compensation and a firm deadline. A demand arriving on collection agency letterhead lands differently to your fourth statement.

Alongside the letter, our collectors work the account by telephone and email, bypassing the accounts inbox and going directly to the director or finance controller where necessary. Most commercial debts that are going to settle, settle at this stage.

Stage Two: Negotiation and Payment Arrangements

Where the debtor is trading but tight on cash, a structured instalment arrangement recovers more than a claim form does. We negotiate terms, document them properly, and monitor every payment against the schedule.

You approve any arrangement before it is agreed. Nothing is written off or discounted without your instruction.

Stage Three: Legal and Enforcement Action

If the account stays unpaid, we prepare the file for County Court proceedings or, where the debt is undisputed and over £750, a statutory demand as a precursor to winding up. That route carries real weight with a solvent company that is stalling.

After judgment, enforcement options include High Court writs, third party debt orders against the debtor’s bank, charging orders over commercial property and attachment of earnings for sole traders. We advise on which is worth the cost, because a judgment against an empty shell recovers nothing.

What You Can Add to the Debt

Commercial debts carry rights that many suppliers never claim. Under the Late Payment of Commercial Debts (Interest) Act 1998, you are entitled to statutory interest at 8% above the Bank of England base rate, calculated daily from the date payment fell due.

You can also add fixed compensation on each overdue invoice: £40 on debts under £1,000, £70 between £1,000 and £9,999, and £100 on debts of £10,000 or more. Where your reasonable recovery costs exceed that fixed sum, the Act allows you to claim the difference.

On a £25,000 invoice sitting six months overdue, statutory interest alone runs into four figures. Claiming it properly often covers a significant part of the recovery cost.

Why Businesses Place Commercial Debt With Us

We have run B2B collections since 2005 and work on fixed, transparent commission rates rather than the “no win, no fee” arrangements that hide their charges in the schedule of costs. You know what recovery costs before we touch the file.

Our collectors are trained to keep the commercial relationship intact wherever you want to keep trading with the customer. Pressure comes from persistence, paperwork and correctly applied law, not from aggression, and we work within FCA principles and CSA standards throughout.

You get named contact handling on every account, direct access to the collector working your file, and reporting that shows exactly where each debt sits.

Best Practices That Improve Recovery Rates

Recovery rates fall sharply with age. A commercial debt placed at 60 days recovers at a far higher rate than the same debt placed at twelve months, by which point the company may have restructured, phoenixed or gone into liquidation.

The files that collect fastest share the same characteristics:

• A signed contract or accepted terms and conditions, with a retention of title clause and an interest provision
• Proof of delivery or a signed timesheet, plus the purchase order number
• Written acknowledgement of the debt, even a single email saying “we will pay you next month”, which restarts the six year limitation period

Credit checking new trade accounts before you extend terms prevents most of the problems we are later asked to fix. Setting a credit limit and holding to it costs you far less than a bad debt write-off.

Costs and Commission

Our fees depend on the age, size and volume of the debt placed. Recent, well-documented commercial invoices attract our lowest commission rates, while aged or partially disputed accounts are priced according to the work involved.

Bulk ledger placements are quoted separately, with reduced rates reflecting the volume. There are no upfront charges on standard commission instructions, and any court fees or disbursements are confirmed to you in writing before they are incurred.

Frequently Asked Questions

How long does B2B debt recovery take?
Around two thirds of commercial accounts settle within the first 30 days of placement, usually during the formal demand and telephone stage. Cases that proceed to County Court judgment typically take three to six months, longer if the debtor files a defence.

What happens if the debtor disputes the invoice?
A dispute has to be genuine and raised on reasonable grounds, not invented once payment is chased. We assess the substance of it against your contract and delivery evidence, and where the objection is a delaying tactic we say so and press on. Genuinely disputed sums are referred for legal resolution rather than pursued through collections.

Can you recover a debt from a company that has gone into liquidation?
Once a company enters formal insolvency, recovery moves to the insolvency practitioner and unsecured creditors rarely see much back. This is why placing debt early matters. Where directors have traded wrongfully or moved assets to a new company, there may still be a route worth exploring, and we will tell you honestly whether it is worth pursuing.

Get your outstanding commercial debt reviewed today. Call our new business team on 0333 043 4425.