In 2019 Burnetts’ Debt Recovery Team collected more than £1.6 million on behalf of clients, and in the majority of cases, the costs paid by our clients were recovered from the debtor. Head of Debt Recovery, Rob Winder, gives advice on how we can help ensure that you get paid
As a business, one of the most important functions, which is often forgotten or not dealt with as effectively as it could be, is that of credit control. As personal debt in the UK continues to increase year on year, it has never been more important to ensure that a tight grip is kept on credit control and bad debtors.
A recent report by The Money Charity has shown that people in the UK owed £1675 billion at the end of December 2019, this was an increase of £48.8 billion from December 2018. The average total debt per household, which includes mortgages, was £60,213.00. It is forecasted that household debt is likely to reach £2425 billion by 2023/24. Whilst these figures include mortgages, it is clear that personal debt continues to rise and as a result it has never been more important to ensure that all businesses have good credit control procedures and that they intrinsic within your business.
So what is good credit control?
There are various small easy steps that you can do to help protect and keep your cash flow under control.
- Do a credit check – there are many companies who can be used such as Risk Disk and Experian Duedil who can provide up to date credit reports on customers.
- Set and keep to credit limits.
- Obtain as much information as possible about your clients from the moment they contact you.
- Know and verify the legal status of the client/company.
- Take action on overdue invoices straight away.
- Always obtain signed terms and conditions back from new clients/customers.
It is a known fact that the longer a debt is left the harder it is to collect. So, what can Burnetts do to help?
- We can offer a fixed fee, cost effective and efficient debt recovery service.
- We have local knowledge which is vital in assisting you in recovering the money.
- We are members of the County Court Business Centre which ensures a faster and cheaper access to the court process.
- We have a dedicated team using dedicated state of the art debt recovery software to ensure that all cases are kept reviewed and actioned in a timely manner.
- Our letters before action for debts owed by limited companies are £5.00 + VAT.
- Our letters of claim for debts owed by sole Traders and consumers are £20.00 + VAT.
Should you wish to instruct us to recover your debts we can be contacted on 01228 552222 or firstname.lastname@example.org