Customer or clients will not pay their invoices. There is not a company in the world that has not dealt with this kind of situation. You do business and you expect to be rewarded for your efforts. However, this does not happen. Polite reminders are simply not enough when it comes to getting your money back. You have no choice but to engage in the debt collection process. The economic times are tough and you cannot afford to sit around and wait. It is important to stress from the very beginning that business debt collection is no easy thing. As a matter of fact, it is quite easy to end up making mistakes. These are the disastrous pitfalls to avoid when chasing debt. Read attentively.

 

Not considering the Administration of Justice Act

In the United Kingdom, debt collection is controlled by the Financial Conduct Authority. The FCA regulates licenses and regulates the activity of London debt collection agencies. When you do decide that it is time to hire professional debt collectors, ensure that they are approved by the financial regulatory body. In case you did not know, you are not allowed to resort to unfair practices, such as telling customers or clients that their property will be seized. The Administration of Justice Act does not permit it. Not only can you not misrepresent enforcement powers, but also you are not allowed to harass people. If you do use aggressive pressure or intimidation, you will have to support the consequences.

Not offering flexible payment options

Let us that you finally come to an agreement with the customer or client. They are willing to pay off the debt. The only problem is that they do not dispose of the necessary financial resources at the moment. What you should do is provide them the chance to pay at a time that is more convenient for them. You will get paid faster, so the financial health of your company will not have to suffer. Even though you are not willing to transact under the terms of the debtors, you should make an effort. That is if you want to get your hands on what is rightfully yours. Think about setting up a payment portal. This makes paying fast and easy.

Waiting too long to hire a debt collection agency

Until this point, it is clear that it is not a good idea to chase business debt on your own. You do not have a good understanding of how things work, meaning that you are susceptible to making mistakes. The best thing you can do is hire a debt collection agency with experience in dealing with such matters. The professionals know exactly what to do to get customers or clients to meet their obligations. There are a great many laws that govern the debt collection process that you are not even aware of. Debt collectors know the law by heart and they are aware of the unique needs of businesses. The result is that they have many programs to choose from. Make sure that you find the right agency to suit your ne