Debt collection agencies fill a very specific role. We take the time and effort out of chasing your own debts. This includes both personal and business debts. They can be for unpaid invoices, missed rent, bounced cheques and more; they can be recent or they can be dating back a number of years.
What many may be unsure of however is what exactly we can do for you. When can we step in and help? This article is aimed at those currently unsure as to whether AYOM Collections can help you.
Liquidation and Bankruptcy
A debt collection agency can't make a debtor or business pay if they are in liquidation. In the case of an individual, we can't make them pay if they are bankrupt, unless the debt post-dates the bankruptcy.
There are cases where a business continues to operate and trade to generate revenue, despite notifications of ceased trading. This is part of the debt collection agency's duty to find this out for you. Our tracing tools will help determine if a company is indeed generating income.
In this situation, your recovery agency can attempt to establish if there is money or assets to offset against the total debt owed to you.
Affordability and Payment Plans
It takes experience to decide a business or individual's ability to pay. We have access to multiple tracing and credit check tools at our disposal. Using these tools we can quickly determine how much can be paid and how regularly.
We can make sure your debtor makes regular payments on time and sticks to a payment plan. We are also able to use our considerable experience to overcome delay tactics or outright avoidance on the part of a debtor.
Dealing with Disputes and Mediation
Debt collection agents can negotiate a settlement if your debt is disputed but you must provide proof of debt. You must also show proof that work has been completed or goods supplied. All relevant previous correspondence and conversations between the parties at the outset should also be provided.
If the invoice remains in unresolved dispute, an agency cannot force them to pay if the dispute is determined to be legitimate. There is however the option of mediation or legal action. This must always be weighed up and carefully considered to avoid financial risks. We are however, able to advise you on the best path to take.
A debt collector can't pursue debts more than six years old if no contact has been made in that time. However, under the Limitation Act 1980, if there has been continued contact regarding the invoice and the debtor has either made a part payment or communicated with your business, we can pursue indefinitely.
Tracing and Searches
Debt collection agencies can take action to trace people who have purposely hidden their location. To assist us, we will need as much information as possible to conduct the search. Information which will help us initially includes:
Advantages to using a Debt Collection Agency
A debt collection agency can save you time and money. Chasing debts is often a very time consuming task for any business. It takes persistence and patience to establish links and contact to move that debtor down the path to payment.
When outsourcing debt collection work, your business can be focusing on more productive activities that would have otherwise been spent on the phone (often to the wrong person), writing letters and sending emails.
Need more information?
If you'd like to speak to an expert to answer further questions about debt recovery, you can contact AYOM Collections on 0800 130 3357. Lines are open 9am-5pm Monday to Thursday and 9am-4pm on Fridays. You can also get in touch via our contact form here.
Our team can answer all queries regarding our services. So if you could benefit from debt recovery, mediation, tracing, credit checks or legal assistance, call us today to see what AYOM Collections can do for you.