Recover My Debt – How to Collect Owed MoneyLast modified: November 1, 2021
Recover My Debt – How to Collect Owed Money
Being owed money and making sure you are paid on time are things that many people in the UK deal with every day.
Maintaining a steady cash flow has never been more important, and the cost of living continues to rise.
When facing the challenge of recovering money, private individuals and small businesses need a cost-effective solution. For many, debt recovery costs could be perceived as something that is too expensive. This is not necessarily the case, and knowing which options are available when you are owed money can make a difference.
In this article, our collections experts explain some of the most effective ways to recover outstanding debt.
Personal Debt Recovery
Being owed money personally is always a stressful and frustrating experience. Whenever making financial arrangements on a personal level, you should always document and record what is agreed in writing.
For example, if you are loaning money to a friend, you should draft a document that has details of when the repayment is due. You should also get them to sign this document if possible.
These documents are known as “payment terms”, and can help later on if the person you are dealing with does not pay you back.
Private individuals do not always have the time or expertise required to recover a debt. A good option is to instruct a specialist private debt collection agency to enforce the collection of your money.
Recovering Debt From a Company
If you are a freelancer, self-employed or a sole trader, you might be owed money by a client. Or, you may be a private individual that has been underpaid by a former employer.
If you are dealing with a business, setting up payment terms of 30 days or 60 days is a good measure (as with a personal debt). This gives the business in question a reasonable time frame for them to pay you within.
If payment is not made by the due date, you can issue a payment reminder that will prompt the debtor for payment. This should be polite and professional in tone and sent via recorded delivery.
If your reminders are being ignored, instructing a private debt collection agency is a good professional solution.
Recovering Unpaid Invoices UK
If you have issued an invoice for private debt, it can often be unclear what to do if it is not paid.
One good incentive for recovering an unpaid invoice is to include late payment charges on your invoices. You can also claim late payment interest using a fixed fee bank of England base rate. This can be effective but may require some of your time to enforce.
Recover My Debt – Frequently Asked Questions
How Much Will a Professional Debt Collection Agency Cost?
Every debt collection agency has its own unique pricing structure and because of this prices can vary. At Frontline Collections, we operate the lowest commission rates, starting from as little as 8% for personal debts.
What Are Private Debts?
Private debt is when an individual is owed money by someone else. This may be a person that has loaned money to a friend or family member. Or it may be a freelancer that has not been paid by a client.
Is there a Minimum Debt Value for Professional Debt Collection Services?
Most debt recovery agencies have a minimum debt value. For example, Frontline Collections can handle debts that are legally valid from £250+. However, we can sometimes help with lower amounts depending on the circumstances surrounding them.
Should I Legal Action to Recover My Debt?
Many people choose to take their case of debt collection to court. Whilst this can be a very effective measure in some cases, it can also prove to be very costly. Court action can become very expensive, and this cost may be too much for private individuals to support.
Can I Recover My Debt from Another Country?
It is completely possible to recover money from someone in another country by using the services of a specialist international debt collection agency. Frontline Collections has a trusted global network of collection agents, each of whom is an expert in recovering debt from virtually any country.