Low Cost Debt Collection – It’s now a Reality!
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In my previous blog I talked about the importance of implementing good quality terms and conditions and how they can benefit your business.
We now have a number of customers receiving a low cost debt collection service from Debt Solve UK Ltd as a direct result of implementing new terms and conditions to their businesses.
How does it work?
Example: if your terms and conditions state your customer has 30 days to make payment, then payment is deemed to be late on day 31 and the following amounts can be added to the balance due along with interest at 8% above base rate (interest is calculated daily).
- For a debt less than £1,000, the sum £40.00 can be added.
- For a debt of £1,000 or more, the sum of £70.00 can be added.
- For a debt of £10,000 or more, the sum of £100.00 can be added.
The UK was one of the first countries in the European Union to implement late payment legislation and was designed to encourage prompt payment from businesses of all sizes.
Low cost debt collection is a now reality, talk to Debt Solve and save.
Image Credit William Warby
Debt Recovery Tip #2:A fast & effective way to collect bad-debt without having to go to court
Reading Time: 60 Seconds
Did you know that if you’re owed more than £750 and the debt is undisputed you already have a very effective weapon up your sleeve – one that does not involve you having to go to the courts?
Issue a Statutory Demand – It’s Fast and Packs a Punch!
You can issue a Statutory Demand and in effect, you can force your debtor to either settle or go bankrupt within 3 weeks. This method is highly effective if you feel you are getting ‘the run-around’ – especially if you’re confident your debtor has the means to pay you.
Here’s a snapshot of the process
- If you are owed more than £750.00 and the debt is undisputed the debtor can be issued a Statutory Demand
- A formal demand is sent to the debtor and it must be set out in a specified format, the format can be found in the insolvency rules.
- Generally a solicitor will draft the demand and arrange for it to be served on or sent to the debtor; our company lawyers are able to undertake this work for you at a relatively low cost
- If the debt remains unpaid after 21 days you can petition the court to wind up the company or make an individual bankrupt.
- The thought of being wound up or made bankrupt often has the desired effect!
If you would like any further information, call us today on 01527 543 672 or contact us here for a no obligation chat.
Remember, we collect debts for a living.
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