I Have Unpaid Referral Fees, What Should I Do?
I Have Unpaid Referral Fees, What Should I Do?
Have you provided a referral service for a customer, only to be let down when it comes to being paid? It may give you peace of mind to know that this is, sadly, a common occurrence within the industry.
As such, Frontline Collections have specific expertise in recovering unpaid referral fees from businesses in the UK and overseas.
A large percentage of referral firms in the UK are small businesses or self-employed individuals.
For these, where managing a consistent cash flow is crucial to success, getting paid on time is a necessity.
The duty of referral agencies is to help other businesses grow by directing others to the company in question.
Those that carry out these types of services do so in exchange for a monetary payment, known as a referral fee.
These types of transactions fall into the bracket of commission payments, related to either the actual sale of a product or the introduction to a business.
One of the main parts of any professional relationship is the trust you have with the customers you work with. If you have a referral fee that is owed to you, you should be paid in a timely manner.
The Most Common Excuses for Unpaid Referral Fees
The nature of payment for referral fees is that they are paid when you have completed the services, rather than at the start.
It is extremely unfair for a customer to ask for your help to grow their business, only to interrupt the growth of your firm when they do not pay.
The fact remains that, if this happens, you need to take necessary action to recover the fees that are overdue.
We have produced this guide to outline the most common excuses for why referral fees go unpaid and how to recover these.
“I did not know that payment was due.”
This excuse is, quite possibly, one of the most common of all the ones we have experienced.
Any proactive customer will know when they are to pay for services they have been provided.
If this is not the case, this shows a lack of professionalism and further reveals their payment intentions.
This is one of the main reasons why businesses ask customers to sign payment terms and conditions prior to providing the services.
“Details on the invoice are incorrect.”
A common excuse we hear a lot is that information on the invoice, such as names, addresses etc., are incorrect.
Whilst this may be genuine, as all invoice details need to be correct, it can be used as a delaying tactic.
The customer may have deliberately given you the wrong invoice address to provide them with more time to get out of paying.
“We are experiencing financial difficulty.”
The customer may suddenly hit you with excuses related to cash flow problems, with no prior indication.
A level of leniency is needed when dealing with such an excuse, as if true, this can be a sensitive subject to discuss.
However, you should only be lenient for so long, as you still deserve to be paid.
“A cheque has already been sent in the post.”
In the modern world, it makes no sense for a customer to pay by cheque, considering the swiftness of online payment methods.
If a customer uses the excuse that they have sent a cheque in the post, this is usually to buy time.
For you, there is no way to know whether they are telling the truth either, especially if no dispatch notifications have been provided.
The Best Way to Recover Unpaid Referral Fees
If you have experienced one or more of the above excuses, you may be left wondering what the next steps are.
Fortunately for you, it should help to know that there are many debt recovery methods available.
Choosing the right one for your business may feel like a challenge in itself, however, there is only one true solution.
Frontline Collections produce the leading debt recovery rates for unpaid referral fees in the UK.
Our private debt collection service is known as the most effective, focusing on high success rates with low costs involved.
Unlike other debt collection agencies, we do not act to intimidate the debtor by using unjust recovery tactics.
We pride ourselves on our professionalism, which ensures the relationship with your customer is not damaged.
If referral fees have turned from outstanding to overdue, you need to contact our friendly experts.
Unpaid Referral Fees – Frequently Asked Questions
What should I do if referral fees are left unpaid?
Every referral agency deserves to get paid, and it is important to take action as soon as a customer fails to pay an invoice. There are many debt collection methods available.
Should I use a law firm or a debt collection agency?
These two methods are, arguably, the most common for recovering unpaid fees. We recommend using a debt collection agency, such as Frontline Collections, to maximise success and affordability.
How long will it take to recover the referral fees that are overdue?
Due to the complexity of particular debt recovery cases, it is impossible to say how long it will take. Frontline Collections, however, recover debts as quickly as possible for our clients. This can be understood more thoroughly by speaking to one of our experts.
Can you recover fees on behalf of individuals as well as companies?
Yes, we have provided debt collection services to both small businesses and private individuals in all industry sectors.
Does debt collection affect the relationship with the customer?
The methods we use when recovering unpaid fees for our clients means that no existing relationships are jeopardised. This will allow for the continuation of future business with your debtor.