No matter what type of industry your business is in, many businesses have faced debt collection issues. Assuming you have already tried several solutions internally, for example, sending reminder emails, phone calls, or sending overdue invoices; yet the debtor still isn’t paying you. This shows the possibility that the debtor might also not pay others as well. This is the time where you should consider taking your action to another level. 

Before taking legal action, it is important to ensure you have done the following:

  • Phone call with the debtor to inform them about the overdue payment
  • Sent follow up email as a reminder
  • Ensure all invoices have been sent 

 

After you have done all that you legally can, it is time to consider hiring the professionals to handle these tasks for you, such as a Debt collector or a Debt recovery lawyer

 

Hiring a Debt Collector Agency

Why hire a debt collector agency? Well because they specialise in what they do. Debt collector agencies are the best alternative for a business that needs help from a third party to professionally handle this uncomfortable and bothersome situation. It is also important to select a debt collector agency that has experience within your industry. 

Now you might be wondering how hiring a collectors agency makes it easier for your business? Are the results guaranteed? It is known that when hiring a collector agency, there is a real possibility that the debt will be successfully collected as they have the ability to register unpaid debt against the debtors credit history which always appears on record. As well as their expertise in this field, and proven technique in debt collecting, which makes the debtors take messages from debt collectors much more seriously. 

Moreover, many debt collectors offer competitive rates like “No collection, no commision”. Therefore you only have to pay when the debt collectors recover the money owed to you. 

 

Hiring Dispute Lawyers / Debt Lawyer

Another smart alternative is to hire a debt lawyer who specialises in debt collection. 

One of the main benefits of hiring a lawyer is the fact that they are allowed to issue letters of demand, often prompting debtors to repay the debt. The threat from the court is one of the most effective tools to get debtors moving as the lawyers are specialised and have great negotiation skills. If you are planning to negotiate on repayment debt, lawyers are a great choice to negotiate on the settlement. 

Although you might not have to pay the debt collector up front due to, in most cases, the “No collection, no commission” offer, often they will take a big portion of your commission. Therefore if the amount of your debt is considerably large, it is more preferable to hire a Debt lawyer which is much more cost efficient. 

In the case of debtors refusing to pay the debt, Debt Lawyers also have more power than debt collectors in performing legal processes.

 

So who to choose for Debt Recovery?

Recovering debt can be a time consuming and expensive process. You can choose to do it yourself or by professionals such as debt collectors or debt recovery lawyers. 

When the amount of debt is small, it is easier to do it by yourself to save money to avoid any unnecessary fees. On the other hand, using debt collector service is also a helpful choice. However, it is important to keep in mind that the agency will take commission out of your recovery portion and they also have limitations on taking legal action in case the debtors refuse to pay and the issue goes to court. The third choice is to hire a debt recovery lawyer. Lawyers have more access to legal processes such as advice on your legal rights, draft a letter of demand, as well as assist you if needed when recovering the debt through litigation.

It is important to choose a debt recovery option that is most suitable to your situation. The right choice usually depends on the amount of debt you own and the possibility of recovering the debt. 

 

At LegalVision, we have dispute lawyers who can assist at all stages of the debt recovery process. Our LegalVision’s team has a broad range of experience in providing effective debt recovery solutions. Unlike debt collector agencies we do not charge commission, we offer fixed rate fees and use technology to provide the most cost effective solution for your business. Get in touch with us today for more information on Debt recovery service